(MENAFN- KNN India)
New Delhi, Dec 13 (KNN) India and the European Union (EU) are advancing negotiations towards a comprehensive free trade agreement (FTA), with both sides demonstrating commitment to crafting a balanced and mutually beneficial economic partnership.
The Ministry of commerce and industry announced on Thursday that ongoing discussions are focused on achieving a commercially meaningful deal while carefully addressing the sensitivities of both parties.
Commerce and Industry Minister Piyush Goyal met with a European Commission delegation, emphasising the need for strategic political direction in the negotiations.
The two sides have already conducted nine rounds of talks, with the most recent session from September 23-27, 2024, making limited progress on critical issues such as rules of origin and government procurement.
The next negotiation round is anticipated in the first quarter of 2025.
During the high-level meeting, which included Minister of State for Commerce and Industry Jitin Prasada and senior officials, both parties highlighted the growing economic proximity and expanding trade ties between India and the EU.
Goyal underscored the principle of common but differentiated responsibilities (CBDR) in sustainability discussions, recognising the distinct developmental trajectories of India and the EU.
The economic potential of this partnership is significant. India projects its economy will grow 7-8 per cent in the coming years, potentially becoming the world's third-largest economy with a GDP expected to reach USD 35 trillion by 2047.
The EU, currently India's largest trading partner in goods, recorded bilateral trade of USD 137.41 billion in 2023-24, with services trade adding an additional USD 51.45 billion in 2023.
EU representatives acknowledged the substantial opportunities for economic integration, emphasising potential benefits such as more resilient supply chains and enhanced market access.
This negotiation comes as part of India's broader strategy to diversify exports and increase its global trade share. Notably, the EU is the second major bloc, after the United States, to establish a Trade and Technology Council with India, signalling a strategic relationship that extends beyond traditional trade considerations.
The proposed FTA is seen as a critical component of India's ambitious goal to achieve a USD 2 trillion export target by 2030.
Moreover, the negotiations will likely serve as a crucial test of both parties' ability to find common ground on critical issues such as climate commitments and sustainable development.
The meeting was attended by ambassadors from the European Commission and representatives from multiple EU member states, including Austria, Belgium, Bulgaria, Czech Republic, Estonia, Italy, Ireland, Latvia, Lithuania, Malta, Poland, Portugal, Romania, Slovak Republic, Spain, and Sweden, alongside India's commerce and DPIIT secretary.
(KNN Bureau)
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