Trade Agreements With US, EU To Be Concluded Soon: Sitharaman

(MENAFN- Kashmir Observer) New Delhi- Finance Minister Nirmala Sitharaman on Tuesday said negotiations for the proposed free trade agreements with the US and European Union (EU) are progressing at a fast pace and would be concluded soon.

All efforts are being made to boost exports to achieve the ambitious target of USD 2 trillion by 2030.

India has already signed free trade agreements with the UAE, Australia, and 4-nation EFTA (European Free Trade Association) bloc and negotiations have been completed with the UK, she said adding“with the US and the European Union, negotiations are really intensely going on and should come to conclusion sooner.”

The emphasis now is on concluding more free trade agreements, she said while inaugurating Trade Conclave by India Exim Bank here.

She also mentioned Budget announcements of Export Promotion Mission and Bharat Trade Net, a digital public infrastructure which provides a unified platform for trade documentation and financing solutions.

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The Budget also proposed a National Framework for Global Capability Centres (GCC) to further support services-led growth in emerging tier 2 cities and Trade Facilitation Measures.

Referring to the country's exports, the finance minister said total exports of goods and services reached a record high of USD 825 billion in FY25, achieving 6 per cent growth over previous year. This is a significant leap from USD 466 billion in 2013–14.

While global exports grew by only 4 per cent, India's exporters managed to fast-track and cross growth of 6.3 per cent despite global uncertainties on trade front, she said.

Observing that exporters are“swimming against tides” , she assured all support to them and urged them to focus on innovation and finding newer markets for their products.

Quoting United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2025, she said, India's position has improved though the global FDI flows dropped 11 per cent.

FDI inflows of nearly USD 668 billion from 2014-24 account for nearly 67 per cent of the total FDI reported in the last 24 years which was USD 991 billion, she said.

India has deepened its participation in global value chains, she said, adding, Apple India's iPhone contract manufacturers have crossed the 20 per cent domestic value addition (DVA) threshold across variants.

Speaking at the event, Financial Services Secretary M Nagaraju said India's growth prospects remain bright even as the world economy is troubled by geopolitical uncertainties and significant headwinds emanating from it.

“Even amidst all the global headwinds, India continues to be a beacon of hope,” he said.

Nagaraju said that India's exports, which the commerce ministry is“trying very hard” to integrate into the global value chain, are doing well irrespective of the challenges.

Exports from the pharmaceuticals and gems and jewellery sectors are showing resilience, he said adding in this endeavour, the finance ministry is committed to extending support through policy, schemes and financial aid.

'India, UK Likely To Sign Trade Pact By July End; Commerce Secy In London'

The process of legal scrubbing of the India-UK free trade agreement (FTA) text is progressing at a faster pace, and the pact is expected to be signed by the end of July, an official said on Tuesday.

To give an impetus to the process, Commerce Secretary Sunil Barthwal is in London with his official team.

Barthwal will meet UK Secretary of State for Business and Trade Jonathan Reynolds and other British senior officials during his two-day visit.

The two countries announced the conclusion of the negotiations on May 6. It will remove taxes on the export of labour-intensive products such as leather, footwear and clothing, while making imports of whisky and cars from Britain cheaper, in a bid to double trade between the two economies to USD 120 billion by 2030.

The world's fifth and sixth-largest economies concluded the deal after three years of on-off negotiations.

Once the FTA is signed, it will require approval from the British Parliament and India's Cabinet before it can take effect. The implementation is likely to take about a year after the signing.

“The agreement is likely to be signed by July end. India's legal team is also there in London for the legal scrubbing of the text. The pact's text would be put in public domain after signing,” the official said, adding the commerce secretary's visit is important, as issues such as the implementation process of the pact would be discussed.

Commerce and Industry Minister Piyush Goyal was also in London earlier this month. He held discussions with Reynolds on issues related to the implementation of the FTA.

Prime Minister Narendra Modi has invited UK Prime Minister Keir Starmer to India.

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