India and the European Union officially signed a comprehensive free trade agreement on Tuesday, capping more than 20 years of negotiations. Indian Prime Minister Narendra Modi described the agreement as a development offering “many opportunities.”
اضافة اعلان
Amid volatile geopolitical conditions, the deal aims to better shield both sides from Chinese competition and the repercussions of the U.S. trade war.
Speaking in New Delhi before a scheduled meeting later Tuesday with European Council President António Costa and European Commission President Ursula von der Leyen, Modi praised the agreement, saying it is “considered the most important agreement in the world.”
He added, “This agreement will create numerous opportunities for India’s 1.4 billion citizens and millions of EU residents,” noting that it “covers nearly 25% of global GDP and one-third of world trade.”
The final obstacles to completing the deal were removed on Monday during the last round of negotiations.
India and the EU hope the agreement will boost trade between them through reduced tariffs across many sectors. In 2024, bilateral trade reached €120 billion in goods—an increase of nearly 90% over ten years—and €60 billion in services, according to the EU.
Brussels views India’s massive market as a key opportunity, with strong economic growth of 8.2% year-on-year in the last quarter of the previous year. According to the IMF, India is expected to surpass Japan this year to become the world’s fourth-largest economy, after the U.S., China, and Germany, potentially reaching the top three by 2030.
“Competitive Advantage”
From India’s perspective, Europe is an essential source of technology and investment needed to accelerate modernization and create millions of jobs.
Upon her arrival in India on Sunday, Ursula von der Leyen said, “The EU expects to benefit from the highest level of market access ever granted to a trading partner in India, which has long been a protected market,” predicting a doubling of European exports. She added, “We will gain a significant competitive advantage in key industrial and agri-food sectors.”
The agreement allows India to open up further to European production in exchange for improved access for its textiles and pharmaceuticals to European markets.
Additionally, India and Brussels plan to initial agreements on seasonal worker mobility, student and researcher exchanges, and certain skilled professionals, as well as a security and defense pact.
Von der Leyen stated, “India and Europe have made a clear choice: strategic partnership, dialogue, and openness. We are showing the divided world that another path is possible.”
In defense matters, India has diversified its military procurement away from its traditional supplier, Russia, while Europe seeks to do the same with the United States. (AFP)
