India EU FTA: The Free Trade Agreement (FTA) between India and the European Union (EU) is not just a paper signed between the two parties, but it is going to prove to be a historic turning point for the Indian economy and especially the electronics market. India is now fully prepared to establish its dominance in the European markets. The blueprint drawn by Pankaj Mohindroo, Chairman of India Cellular and Electronics Association (ICEA), shows that the coming decade is going to write the story of the golden future of Indian manufacturing.
India will have a hold on the European market
The biggest news of this agreement is that the import duty i.e. customs duty on most of the Indian products sent to Europe is expected to be zero. This means that now Indian goods will be able to be sold at more competitive prices in the European markets. Pankaj Mohindroo says that currently our electronics exports to Europe are worth about 12 billion dollars, but after this deal we are going to take a huge leap. The target is to take it beyond $50 billion by 2031 and beyond $100 billion by 2035.
India gets ‘security cover’ in tax war
In today’s world, when many countries are imposing strict taxes and restrictions on each other, India has taken itself into a safe zone through this agreement. You can consider this as a ‘strategic shield’ for Indian industries. Mohindroo emphasized that amid geopolitical tensions, when the world economy is in turmoil, India has secured its place. This means that even if trade regulations become stricter in the world tomorrow, trade between India and Europe will continue without any hindrance.
Doors of progress will open for the youth
The impact of this agreement will not be limited only to big companies, but its direct benefits will also reach common people like you and us. Ranjit Mehta of PHD Chamber of Commerce and Industry (PHDCCI) believes that this agreement is no less than a boon for India’s Micro, Small and Medium Enterprises (MSME). Indian small industries will now get a direct opportunity to connect with the huge European economy worth 23 trillion dollars.
When sectors like textile, apparel, gems and jewelery will get such a big market in Europe, how many new employment opportunities will be created in the country. The total population of India and Europe is more than two billion, which together constitute 25 percent of the world economy. As the market grows, there is bound to be a huge surge in demand for Indian goods and services.