With the signing of the historic Free Trade Agreement between India and the European Union, which is being termed as the best deal, Prime Minister Narendra Modi praised the agreement and said that it will give a big boost to the manufacturing sector in India. He also said that after this free trade agreement with the European Council, the service sector will also expand.
“This trade agreement with the European Union will give a tremendous boost to the manufacturing sector and will also expand the services sector. The free trade agreement will boost the confidence of every investor and businessman to invest in India,” the Prime Minister said while inaugurating the India Energy Week held in Goa.
Prime Minister Narendra Modi on Tuesday lauded the India-European Union Free Trade Agreement (FTA), calling it an ideal example of partnership between the world’s two leading economies and saying the historic agreement will create huge opportunities for people, businesses and investors in both the regions.
Referring to the recently signed agreement, PM Modi also said that the agreement has already attracted global attention and is being described as the “mother of all agreements”.
The Prime Minister said, “Yesterday a major agreement was signed between the European Union and India. People are calling it the most important agreement ever. This agreement will bring huge opportunities for the people of India and Europe. It is a perfect example of partnership between two major economies of the world.”
He further said, “This agreement strengthens our shared commitment to democracy and the rule of law. This free trade agreement with the EU will also complement the UK and EFTA agreements. I congratulate the people of the country for this.”
India and the EU together account for almost one-fifth of global trade and 25 per cent of the global population, reflecting the growing economic and strategic importance of this partnership.
The EU and India are close partners and are working together to promote economic prosperity, the rules-based international order and sustainable development.
Trade and investment remain the main pillars of this relationship. In merchandise trade, the EU is India’s second largest trading partner, just behind China and ahead of the United States, and accounts for 11.5 percent of India’s total merchandise trade.
According to official data, trade in goods between the EU and India is expected to exceed 120 billion euros in 2024. This included 71.4 billion euros imported by the EU from India and 48.8 billion euros exported by the EU to India. Bilateral goods trade has doubled in the last decade.
During this period, EU imports from India increased by 140 percent, while EU exports to India increased by 58 percent, reflecting the continued expansion of trade relations.
The main goods exported by the EU to India include machinery and equipment, transport equipment and chemicals. On the other hand, the EU mainly imports machinery and equipment, chemicals and fuels from India.
Services trade has also seen strong growth. In 2024, trade in services between the EU and India was over EUR 66 billion, with EU imports accounting for over EUR 37 billion and EU exports accounting for almost EUR 29 billion.
Over the past decade, trade in services between the two sides has more than doubled, registering a growth of 243 percent.
Negotiations on a free trade agreement between India and the European Union began in 2007 and are scheduled to be resumed in 2022. This agreement will boost bilateral trade and investment relations and accelerate shared prosperity.