India-EU Free Trade Agreement Finalized, Piyush Goyal Hails 'Compassionate' Pact
With the landmark India–European Union free trade agreement now successfully concluded, Commerce and Industry Minister Piyush Goyal has described the historic pact as "compassionate and loving", emphasizing that it will ensure substantial gains for all twenty-eight partner nations involved. The agreement, often referred to as the "mother of all deals", is projected to potentially double India's exports to Europe within a five-year timeframe, according to PTI reports.
Significant Export Growth Projected
Minister Goyal highlighted that India already maintains a trade surplus with the European Union in both goods and services sectors. He expressed confidence that the free trade agreement would significantly accelerate outbound shipments once it becomes operational, which is anticipated to occur later this year.
"Now, with 99 per cent of India's exports receiving duty-free access from the very first day of implementation within the EU, the country's exports are likely to double within five years," Goyal stated during his interview with PTI.
In the fiscal year 2024–25, India's goods exports to the European Union reached an impressive $76 billion, while services exports were valued at $46 billion. These figures provide a strong foundation for the anticipated growth following the implementation of the trade agreement.
A Fair and Balanced Agreement
Using a maternal metaphor to illustrate the agreement's scale and intent, Goyal emphasized that the FTA would maintain fairness for all participating nations. "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," he explained.
Call to Action for Indian Businesses
The commerce minister strongly urged Indian businesses to capitalize on this unprecedented opportunity by increasing investments and expanding production capacities, rather than relying predominantly on the domestic market. He encouraged companies to "seize" the moment and move beyond what he described as the "cosy comfort" of India's substantial internal demand base.
Consumer Benefits and Future Trade Prospects
Goyal identified consumers as the primary beneficiaries of the India-EU free trade agreement, noting that enhanced competition and reduced tariffs should make goods more affordable and accessible to the general public.
Regarding the possibility of a separate trade agreement with the United States, often characterized as the potential "father of all deals," the minister revealed that India is actively working to conclude negotiations "quickly". He added that discussions are progressing positively and expressed optimism about reaching a favorable outcome.
Long-Term Trade Ambitions
The commerce minister reiterated his confidence in India's broader trade objectives, expressing hope that the country's ambitious target of achieving $2 trillion in exports could be realized by 2032. This vision aligns with the government's comprehensive strategy to position India as a global economic powerhouse through strategic international partnerships and trade liberalization.
The India-EU free trade agreement represents a monumental step in India's economic diplomacy, promising to reshape trade dynamics between two of the world's largest economic regions while fostering mutual growth and prosperity.
