India-EU Free Trade Agreement (FTA) Negotiations
The negotiations for the proposed Free Trade Agreement (FTA) between India and the European Union (EU) are focused equally on tariff and non-tariff barriers. Both parties aim to conclude the FTA by the end of 2025.
Key Highlights of the Negotiations
- Commerce and Industry Minister emphasized the importance of addressing both tariff and non-tariff barriers to ensure meaningful market access while respecting sectoral sensitivities.
- It was underscored that regulatory frameworks should be inclusive, proportionate, and refrain from restricting trade.
- The agreement is expected to serve as a transformative pillar in enhancing market access, aligning regulatory practices, and boosting innovation and competitiveness between the EU and India.
Strategic Importance and Future Engagements
- The high-level dialogue highlighted the strategic importance of a mutually beneficial trade partnership, supporting economic resilience and inclusive growth.
- Continuous momentum is maintained through monthly negotiating rounds and ongoing virtual engagements.
- The 11th round of FTA negotiations is scheduled from May 12 to 16 in New Delhi.
Background and Progress
- India and the EU resumed FTA negotiations in June 2022 after a nine-year hiatus. Despite nine intense rounds, progress has been slow.
- In parallel, negotiations for an investment protection agreement and an agreement on geographical indications are underway.
- Both parties acknowledge the vital role of investment flows and people-to-people mobility in sustaining economic vitality.