New Delhi, January 27 (IANS). Getting preference for Indian exports in FTA with EU is a game changer. This information was given by the Confederation of Indian Industry (CII) on Tuesday.
The India-European Union (EU) FTA has opened up export opportunities worth $75 billion (Rs 6.41 lakh crore) for the country, of which $33 billion worth of exports in labour-intensive sectors like textiles, leather, marine products, gems and jewelery are set to benefit hugely by getting priority under the FTA.
According to Chandrajit Banerjee, Director General of CII, this historic agreement is a strategic breakthrough in India’s global trade engagement and significantly strengthens the partnership between the two leading democracies and economies, which together account for about 25 per cent of global GDP.
“This agreement decisively enhances India’s competitiveness in the EU high-value market, positions Indian manufacturers and service providers more strongly in global value chains, and accelerates investment, technology flows and expansion,” Banerjee said.
CII said that by providing tangible benefits for labour-intensive sectors and small and medium enterprises and enabling a future-friendly mobility framework for Indian talent, this agreement lays the foundation for sustainable, inclusive and globally competitive growth, which is fully aligned with the government’s vision of a developed India by 2047.
Anant Goenka, President, FICCI, said, “The EU is the largest and highest potential market covered by India’s recent Free Trade Agreement (FTA), which opens new doors for deeper economic cooperation. This will enable broader market access, stronger value chain integration and enhanced export competitiveness in manufacturing and high value sectors.”
Dr. Ranjit Mehta, CEO and General Secretary, PHDCCI, said that the FTA between India and the European Union may see an increase of 35-45 percent in India’s exports to the EU in the next five years (after implementation of the FTA).
He further said that the agreement is expected to lead to an annual growth of 8-12 per cent in the pharmaceutical sector, as well as an annual growth of 7-10 per cent in engineering products, including electrical machinery and industrial equipment, with deeper integration into European supply chains.
He further said that the combination of duty reduction, investment protection and geographical indication recognition will reposition India as a value creator rather than competing on the basis of volume alone.
–IANS
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