Union Commerce and Industry Minister Piyush Goyal on Saturday enthusiastically welcomed India's landmark free trade agreement with the European Union, describing it as the "mother of all deals" that is poised to substantially enhance New Delhi's exports to the bloc in the coming five years. The minister's remarks underscore the strategic importance of this pact for India's economic trajectory.
A Transformative Trade Partnership
This comprehensive agreement, often referred to as the "mother of all deals," is designed to provide duty-free access to an impressive 99% of Indian exports from the very first day of its implementation. Last month, both India and the EU officially confirmed that the negotiations for this ambitious agreement have successfully concluded, with the pact expected to come into effect later this year, marking a new chapter in bilateral trade relations.
Current Trade Dynamics and Future Prospects
Minister Goyal highlighted that India already maintains a robust trade surplus with the European Union in both goods and services, showcasing the strength of the existing economic relationship. In the fiscal year 2024-25, Indian goods exports to the EU reached a substantial $76 billion, while services exports contributed an additional $46 billion, reflecting a diversified and growing trade portfolio.
Elaborating on the nature of the agreement, Goyal stated, "This mother is neither going to be very strict nor lenient. This mother is going to be compassionate, this mother is going to be loving, and this mother is going to make sure that both her children and, for that matter, the 27 nations of Europe and India, all 28 children will enjoy the fruits of this free trade agreement." This metaphorical description emphasizes the balanced and mutually beneficial character of the pact.
Opportunities for Domestic Industry and Consumers
The minister strongly urged domestic companies to proactively seize the new opportunities presented by this agreement. He encouraged them to expand their production capacities, increase investments, and move beyond reliance on the domestic market to tap into the vast European market. Goyal also emphasized that consumers stand to be among the biggest beneficiaries of the deal, as goods are expected to become more affordable due to reduced tariffs and enhanced competition.
Broader Trade Ambitions and the 'Father of All Deals'
In reference to another major trade initiative, Minister Goyal characterized the ongoing talks with the United States as the "father of all deals" and expressed optimism about closing this agreement swiftly. He noted that negotiations with the US are progressing well, indicating a positive momentum in India's external trade engagements.
On India's broader trade ambitions, Goyal expressed strong confidence in achieving the country's ambitious target of $2 trillion in exports by 2032. This goal reflects India's growing stature in the global economy and its commitment to leveraging trade agreements for sustainable economic growth.
The India-EU free trade agreement represents a significant milestone in India's trade policy, promising to deepen economic ties, boost export revenues, and create new avenues for cooperation between two major economic regions. As implementation approaches, stakeholders across industries are poised to benefit from this transformative partnership.
