What happened?
Union Commerce Minister Piyush Goyal stressed the need for India and the European Union to take concrete steps to remove trade barriers to expedite discussions and finalize the Free Trade Agreement (FTA). Speaking at the ‘Italy-India Business, Science and Technology Forum’, Goyal highlighted the importance of addressing the hurdles delaying the agreement to build on the current bilateral trade volume. His remarks followed a meeting between Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, where both leaders agreed to speed up efforts to finalize the FTA by the end of the year.
Why it matters to India
The finalization of the FTA with the EU is crucial for India to enhance its trade relations and increase market access. The EU is India’s largest trading partner, and removing trade barriers will boost bilateral trade and investment, providing significant economic benefits. This initiative aligns with India’s strategy to strengthen its trade partnerships and navigate global trade uncertainties, including those arising from US trade policies.