Mother of all deals: Piyush Goyal on proposed FTA with EU

This agreement is expected to be a game-changer for India's export sectors, offering significant opportunities for growth and development and transforming India's trade relationship with one of the world's largest economic blocs.

Speaking to media persons in New Delhi, Goyal highlighted India's growing confidence in negotiating trade agreements with developed economies.

"We have done FTA deals with seven developed countries so far. This one (EU) will be the mother of all. It will cover two of the world's most powerful economies. We have very good growth possibilities," the minister said.

The minister stressed that the agreement would be mutually beneficial, noting a key advantage in the trade dynamics.

"It will be a win-win deal for both, but the good part is that we don't compete with each other," Goyal explained, adding that all of India's FTAs are with developed countries rather than competing economies.

Goyal credited Prime Minister Narendra Modi's leadership for India's bold approach to trade negotiations.

"Previous governments were very scared to do FTAs with the developed world. We go to the developed world with full confidence. We are willing to take bold decisions, and therefore we get the best deal out of the other countries," he said.

The minister drew attention to the trust factor, stating that PM Modi approaches negotiations backed by the confidence of 140 crore Indians and recognition from foreign governments of India's emergence as a superpower. He also praised the Prime Minister's risk-taking approach, comparing him to a startup entrepreneur willing to make bold moves.

Providing an update on negotiations, Goyal revealed strong support from EU member states. "In the last few months, at different levels--whether with me, the External Affairs Minister, our ambassadors, or between the Prime Minister and heads of state--all 27 EU states have conveyed their excitement to conclude the India-EU deal very quickly. Not a single one of the 27 states is opposed to an India-EU partnership," he said.

The Minister assured that India would not compromise its national interests in pursuit of the agreement. "I can assure you that we will not compromise the benefit of our country with the FTA deal with the EU," Goyal stated firmly.

Regarding the proposed FTA with the United States, Goyal indicated that negotiations are progressing. "Negotiations are ongoing. The US deal will be done at the right time," he said, without providing a specific timeline.

The FTA aims to boost bilateral trade between India and the EU, which is already India's largest trading partner, with goods trade totalling $136.53 billion in 2024-25. The agreement is expected to cover areas such as market access for goods, rules of origin, services, investment, and intellectual property rights.

India is seeking zero-duty access for labour-intensive sectors like textiles, leather, and handicrafts. The agreement will include safeguards for farmers and Micro, Small, and Medium Enterprises (MSMEs). The FTA will promote regulatory cooperation and transparency, making it easier for businesses to operate in both markets.

Notably, European Council President Antonio Costa and European Commission President Ursula von der Leyen will visit India to represent the EU at the 16th EU-India Summit, scheduled for January 27.

The two presidents will meet Prime Minister Narendra Modi in New Delhi for a summit to consolidate the EU-India strategic partnership and further strengthen cooperation in key policy areas. Discussions will focus primarily on trade, security and defence, clean transition, and people-to-people cooperation, a EU statement said. (ANI)