India EU Free Trade Agreement
The long-running Free Trade Agreement negotiations between India and the European Union (EU) now appear to be reaching their crucial point. If everything goes as per plan, then this agreement can be sealed by the end of this month i.e. January. This indication has been given by German Chancellor Friedrich Merz himself, who is on his first visit to India. The things he said after meeting Prime Minister Narendra Modi in Ahmedabad on Monday have brought a new ray of hope for the Indian economy and common businessmen.
End of January can become a ‘game changer’
During his visit to Ahmedabad, Merz clarified that if the negotiations are finalized by the end of January, the President of the European Commission and the European Council can come to India to sign the agreement. There is great enthusiasm on both sides about this possible agreement. According to German government sources, there have been “extremely intensive” talks between PM Modi and Chancellor Merz, making the chances of a deal being signed in January itself strong. Meanwhile, speaking at a separate event in Gujarat, Indian Commerce Minister Piyush Goyal has also confirmed that this agreement is in its final stages. For the common man, this will directly mean that the access of Indian goods to the European markets will be easier and the technology and products coming from Europe will become more accessible in India.
Merz expressed concern over the global situation
Expressing concern over the current global situation, Chancellor Merz said that the world is currently going through a “renaissance of unfortunate protectionism”. Its direct impact is on countries like India and Germany. Although he did not take the name of any country, the hint was clear. America’s pressure on India to buy Russian oil and China’s control on the export of minerals are big examples of this.
Last year, the supply chain was badly affected due to China’s export restrictions and the US-China trade war, due to which German car manufacturers had to bear the brunt. In such an uncertain environment, this agreement between India and the European Union will not only strengthen both the economies, but it will also prove to be a big step towards reducing dependence on China and America.
Germany wants India’s support on security issues
Germany wants India to work with it on security issues so that its dependence on Russia can be reduced. In this direction, both the countries have signed memoranda of understanding (MoUs) regarding Artificial Intelligence (AI), health sector and critical minerals. PM Modi said in the joint press conference that these agreements will give new momentum and strength to mutual cooperation.