New Delhi, Jan 16 (PTI) Commerce and Industry Minister Piyush Goyal on Friday said the free trade agreement between India and the 27-nation bloc EU, the negotiations for which are at the last leg, will be the “mother of all deals” the country has signed so far.
The conclusion of talks for the agreement is likely to be announced on January 27.
The President of the European Council, Antonio Luis Santos da Costa, and the President of the European Commission, Ursula von der Leyen, will be on a state visit to India from January 25-27. They are chief guests at the 77th Republic Day celebrations.
“I have done seven deals so far. All with developed economies. This one will be the mother of all,” Goyal told reporters here.
In sectors of India’s interest, “we are getting a super deal. In areas of EU interest also, we are giving them a super deal. It has to be a win-win. The good part is we do not compete with each other. We have different interests,” he added.
The NDA government has finalised seven trade pacts since 2014: Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc, and Mauritius.
Before that, several pacts were implemented, and that includes with 10-nation Asean (Association of Southeast Asian nations) bloc, Japan, South Korea, Malaysia, SAFTA (South Asia Free Trade Agreement), and Singapore.
India’s pact with the EU will be the biggest, as the bloc comprises 27 developed countries. The EU bloc includes France, Germany, Spain, Italy, Austria, Belgium, Bulgaria, Finland, Hungary, Ireland, the Netherlands, Portugal, Poland, Denmark, and Sweden.
He also said that the bilateral trade between the two sides is reasonably balanced in goods and services.
It will open huge opportunities for growth, Goyal said, adding that India and the European Union (EU) complement each other and are not in competition.
Negotiations between India and the EU are ongoing. Issues like the EU’s carbon tax still need to be resolved.
Goyal said that there will be no compromise on the nation’s interests.
Commerce Secretary Rajesh Agrawal on Thursday said India and the EU are “very close” to concluding negotiations on the proposed agreement. Discussions are underway to resolve remaining issues so that the deal is ready for announcement during the visit of top EU leadership later this month.
This pact will also be important, as the US’ imposition of high tariffs has disrupted global trade flows. India is facing steep 50 per cent tariffs. The FTA is expected to help Indian exporters diversify their shipments. It will also help reduce dependence on China.
On the status of negotiations on the trade deal with the US, the minister said that “it will also happen at the right time”.
The EU market accounts for about 17 per cent of India’s total exports, and the bloc’s exports to India constitute 9 per cent of its total overseas shipments.
India’s bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making the EU India’s largest goods trading partner.
As per reports, the EU, with a GDP of about USD 20 trillion and a population of over 450 million, is a major global trade player, exporting about USD 2.9 trillion and importing more than USD 2.6 trillion annually.
India, with a population of 1.4 billion, exported USD 437 billion in goods and USD 387.5 billion in services. It imported goods worth USD 720 billion and services worth USD 195 billion in 2024-25.
India is looking at zero-duty market access for its labour-intensive sectors such as textiles, leather, handlooms, and some processed foods. The EU, on the other hand, is seeking greater access to Indian markets for its auto exports, wines, and emerging high-tech manufacturing sectors.
Sensitive agriculture issues have been kept out of the deal. The EU has been protective of its beef, sugar and rice markets.
India, on the other hand, has protected its farm and dairy sectors from competition, as the livelihoods of large numbers of small and marginal farmers depend on them.
Dairy has been excluded from all FTAs that India has signed so far. PTI RR CS DRR
This report is auto-generated from PTI news service. ThePrint holds no responsibility for its content.