India–EU Free Trade Agreement (FTA)

The India–EU Free Trade Agreement marks a significant achievement in Prime Minister Narendra Modi's economic diplomacy. It is expected to create millions of jobs and broad opportunities for India's youth and farmers, impacting a quarter of the global economy.

Key Highlights of the Agreement

• Comprehensive Partnership: Extends beyond trade to include cooperation in sectors like artificial intelligence, defense, and semiconductors. 
• Economic Stability: Promotes rules-based trade and economic policy stability, enhancing India’s attractiveness for investments. 
• Market Access: Secures unprecedented market access for over 99% of India's exports to the EU, supporting the Make in India initiative. 
• Labour-Intensive Sectors: Boosts sectors such as textiles, apparel, leather, and footwear by eliminating tariffs up to 10% on nearly $33 billion of exports. 
• Empowerment and Integration: Strengthens workers, artisans, women, youth, and MSMEs; integrates Indian businesses into global value chains. 

Opportunities and Strategic Importance

• Service Sector Growth: Enhances mobility for professionals, opening opportunities in education, IT, financial services, and computers. 
• Sustainable Economic Growth: Aligns with India’s broader strategy of economic reforms and prudent fiscal management. 
• Quality Assurance: Emphasizes quality improvement in Indian manufacturing aligning with the Viksit Bharat 2047 vision. 

Strategic Approach of the Modi Government

• Negotiation Strategy: Concludes trade agreements only after rigorous consultations, ensuring benefits to India's major job-creating sectors. 
• Contrast with Previous Regimes: Unlike the previous UPA government, which opened markets without adequate consultations, the current government ensures a balanced and strategic approach. 
• Leadership and Vision: Demonstrates decisive leadership, expanding markets and creating jobs while protecting India’s core interests.