US President Donald Trump and Prime Minister Narendra Modi.
There is going to be a major trade agreement between India and the European Union (EU). It is being called free trade agreement ie FTA. Both sides will benefit greatly from this deal. The special thing is that when America is threatening to impose more tax on India, this deal is being considered very important for India. From September 8, a new round of talks regarding this agreement has started. The effort of both countries is to approve it by the end of the year. If this deal is done, then its effect will definitely reach America, which is already angry with the policies of India.
America’s pressure, India’s answer
The US wants European countries to impose more tax on goods coming from India. But India has answered this by increasing friendship with EU. With the free trade deal, India and EU will open the way for each other’s markets. That is, selling and buying goods in each other’s country will be easier than before. This deal is happening at a time when America has imposed heavy tax on many Indian things. Especially on sea products like fish and shrimp. Last year, India sold about $ 2.8 billion shrimp to America. Now after the strictness of America, India is looking for a new market and the EU can become a better option.
What issues have been talked about
So far, 11 out of 23 issues between India and EU have been agreed. These include subjects such as intellectual property (IP), custom rules, transparency in business, small business, digital trade, subsidy and methods of resolving disputes. Now talks are also going on on other issues. The most important of this is – access to the market, removal of technical hurdles, standards related to government procurement and health. Apart from this, both sides have also given proposals related to service and investment to each other.
India’s not on some things
India has made it clear that it wants to keep some important things out of this deal. Especially products related to rice, sugar and milk. The government believes that these sectors should not be opened for foreign companies. At the same time, the European Union wants it to get better access to vehicles and liquor markets in India. Along with this, he wants to export more fish and marine products to India.
The round of conversation is now fast
The 13th round is going on in Delhi, after that the next round will be in Brussels in October. During this time, both countries will also prepare for the India-EU summit to be held in 2026. On behalf of the EU, big officials of their trade and agricultural affairs are coming to India. He will meet India’s Commerce Minister Piyush Goyal so that the deal can be done fast. Meanwhile, the European Union’s foreign policy head Kaza Kallas is also going to introduce a new strategy, which will be about relations with India. It is expected that it will be approved by the end of the year and then it will be announced in the 2026 conference.
Will this deal change?
If this deal is done then trade and investment between India and the European Union will be easier than before. Indian companies will get a large market in Europe and European companies in India. This deal will also give a direct message to America that India is not just a market, but it can trade in the world on its own terms.