India-EU Trade Talks: A New Horizon for Global Economic Ties

India and the European Union (EU) have wrapped up another round of negotiations on the proposed Free Trade Agreement (FTA), agreeing to a phased conclusion due to the current uncertain global trade climate, primarily influenced by US tariff actions.

These talks, which ended on May 16, focused on crucial areas such as market access offers in goods, services, and investment. The EU seeks notable duty reductions in sectors such as automobiles, medical devices, and desires tax relief on items like wines, spirits, and meats. This FTA aims to significantly boost the competitiveness of Indian exports like garments and pharmaceuticals in the EU market.

Commerce Secretary Sunil Barthwal highlighted the focus on resolving core trade issues first, hinting at potential early successes in select areas. The trade agreement covers 23 policy chapters, including trade in goods, intellectual property rights, and sustainable development, with bilateral trade in goods valued at USD 137.41 billion in 2023-24.

(With inputs from agencies.)