UK done EU next for India! Well, post the successful signing of a Free Trade Agreement with the United Kingdom, India is now in advanced talks with the European Union. India and the European Union are very close to signing a trade agreement, since both countries are actively engaging to complete trade negotiations by this year itself.
According to an Indian government official, a delegation of European Officials is expected in India this week. Moreover, it has been mutually decided by both stakeholders of the trade pact to conduct two negotiation meetings within the next month itself to accelerate the talks. These negotiations will be the 13th round of trade talks between both countries, with the first meeting of this round being held in New Delhi. Meanwhile, the second meeting of this round is scheduled in Brussels.
Why the Acceleration from India?
India has been rushing to sign Free Trade Pacts with multiple countries ever since it was battered by US Tariffs. It has also been aiming to diversify its export and import partners by reducing dependence on countries like the US. The mounting pressure of the US on the EU to punish Indian goods with tariffs for buying Russian Oil is another cause for India to be proactive.
What is the Volume of Trade between India and the EU?
India exports a variety of products to EU member states. The goods exported include diesel, precious gems, and jewelry, along with a major chunk of Pharmaceuticals or medicines. Meanwhile, the imports by India from the EU include heavy machinery and appliances, along with textiles and transport equipment. According to a government report, India and the EU member nations are involved in bilateral trade worth $135 billion. This figure makes the EU one of the biggest trade partners of India.
Why Previous Negotiations Failed?
The negotiations between the two countries have been unfruitful for a long time now. However, this year, when the EU president arrived in India to meet Prime Minister Modi, both parties agreed on co-operation. The major chokepoints in the trade pact include the EU demanding import duty cuts on automobiles, wine, meat, and medical devices. Although India has been rigid till now, it will reduce the duties significantly considering today's complex geopolitical environment.