India and the
European Union have formally re-launched the negotiations for a Free trade
agreement after a gap of nine long years. The negotiations were also launched
for a stand-alone Investment Protection agreement and geographical Indicators
agreement. The launching was done at a joint event held at the European Union
Headquarters at Brussels on June 17th in the presence of Commerce
Minister Piyush Goyal and Executive Vice President of the EU Mr Valdis
Indian and EU leaders had reached an agreement held at Porto
in last may for resuming negotiations for a balanced, ambitious, comprehensive
and mutually beneficial Free Trade Agreement and starting fresh negotiations on
the Investment Protection Agreement and a separate agreement on Geographical
negotiations between India and EU on free trade agreement have been going on
for decades but were formally called off way back in 2013 due to differences in
the scope and expectations from the deal.
The negotiations are resuming after a gap of about nine years now.
visit of the European Commission President Ms. Ursula von der Leyen in April
2022, and the Prime Minister Narendra Modi’s recent visit to Europe accelerated
the Free Trade Agreement discussions and helped in defining a clear roadmap for
This would be one of the most significant FTAs
for India as EU is its second largest trading partner after the US.
The India-EU merchandise trade has registered
an all-time high value of 116.36 Billion
US dollars in 2021-22 with a year-on growth of 43.5 per cent. India’s export to the EU jumped 57 per cent
in FY 2021-22 to 65 billion US dollars.
India has a surplus trade with EU.