New Delhi: Prime Minister Narendra Modi on Tuesday announced that India and the European Union have concluded a long-pending free trade agreement (FTA), calling it a historic milestone and a powerful symbol of cooperation between two major global economies.
According to a media report, India and the European Union finalised the agreement after nearly 18 years of negotiations that began in 2007. Under the pact, taxes on European imports such as liquor and luxury cars will either be scrapped or sharply reduced, making high-end vehicles and premium alcohol significantly cheaper in India. Duties on luxury cars, sources said, have been slashed from around 110% to nearly 10%.
Addressing the fourth edition of India Energy Week in his inaugural address, Modi said global attention was focused on the agreement, which he described as one of the most significant trade deals India has ever signed. He said the FTA was expected to open up vast opportunities for India’s 1.4 billion citizens as well as millions of people across Europe.
The prime minister also said India was witnessing rapid growth in the energy sector and continued to offer opportunities to meet rising global energy demand. He termed the India-EU agreement as “the mother of all deals” concluded by the country so far.
The agreement aims to strengthen economic ties between the two regions at a time when global trade is facing disruptions due to rising tariffs and protectionist policies, particularly from the United States. European Commission president Ursula von der Leyen is on a four-day visit to India in connection with the deal, while European Council president Antonio Costa also held talks with Modi on Monday.
While the agreement has been finalised in principle, its implementation could take time as it will require approval from the European Parliament, given that the EU is a bloc of 27 member states.
