India Aims to Finalize FTA with EU by 2025, PM Modi Confirms

Strategic Insights -

Indian Prime Minister Narendra Modi has stated that India aims to finalize a free trade agreement (FTA) with the European Union (EU) by the end of 2025. The talks focus on tariff cuts, services access, and trade in key sectors, with five of the 23 chapters already closed. The next negotiation round is scheduled to begin on July 7.

Key Takeaways:

  • India and the EU have been negotiating a comprehensive trade agreement, an investment protection agreement, and a pact on geographical indications since June 2022.
  • The next round of talks will be held from July 7 in Brussels, focusing on finding convergence on outstanding issues to close the agreement.
  • India seeks zero tariffs on labor-intensive exports and greater access to the EU's services market, while the EU pushes for tariff cuts on cheese and skimmed milk powder.
  • Indian officials are unwilling to provide concessions in dairy, citing the need to protect the domestic dairy industry.
  • The EU wants India to reduce tariffs on wine imports and car manufacturers are pushing for lower duties on completely built-up (CBU) vehicles.

Statistics:

  • 5 out of 23 chapters of the FTA are completed so far.
  • 11 rounds of negotiations have been held between India and the EU on the comprehensive trade agreement.
  • The EU exports over $2 billion worth of automobiles and auto parts to India annually.

Sources:

  • IE Online Media Services Pvt. Ltd.
  • Contify.com