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Union Minister Piyush Goyal hailed the India-EU Free Trade Agreement (FTA) as a landmark deal that places India at the high table of international geopolitics.
Speaking to ANI on the FTA, Goyal emphasised that the agreement is a win-win deal that will drive economic growth and create new opportunities for Indian businesses and citizens. Goyal highlighted the potential benefits of the FTA for India's textile sector, which is expected to see a significant boost in exports. Goyal said, "This FTA between the EU and India places India at the high table of international geopolitics. Under Prime Minister Modi's leadership, India has gained recognition and importance across the world. The world sees India as the fastest-growing large economy, a country with strong macroeconomic fundamentals, and a nation experiencing rapidly increasing demand generated by its 1.4 billion people, an aspirational, young India full of talent and skills. "Today, India is sought after as a trading partner and strategic ally by developing nations across the globe. In the past, India was hesitant about such agreements; we used to be defensive, cautious, and reluctant to take on big challenges. Under PM Modi, India now aspires to become a developed nation, a Viksit Bharat, by 2047. This goal is not achievable without expanding our international presence, business, and engagements. This FTA with 27 countries, developed nations with whom we do not compete, allows for mutual complementarity. They have different skills and products, and we have ours. Together, we become a force multiplier. That is the significance of this agreement," he added. The Minister emphasised that the India-EU FTA is a strategic engagement between two complementary economies. Goyal highlighted the importance of protecting Micro, Small, and Medium Enterprises (MSMEs) and manufacturers under the FTA. He emphasised that the agreement provides adequate safeguards for Indian industries, particularly in sectors like textiles. The FTA is expected to increase investment in India, create new job opportunities, and boost economic growth. Goyal said, "On the protection of MSMEs and manufacturers, Europe does not provide irregular subsidies. These are countries that believe in free trade and fair trade. Their technologies are usually far superior in terms of innovation, and they produce a different set of products. India, on the other hand, has strength in its skilled labor and talent, and therefore, the products and services we provide are vastly different from what we are able to export." "Many of our products are labor-intensive, and there is a huge market for them in the EU. Take textiles, for instance: our exports to the EU amount to just $7 million, while they import $253 billion worth of textiles, less than 3% of the market. We often heard the question of why Bangladesh exports so much more than us, or why Vietnam exports far more textiles. This was because Bangladesh, being an LDC, had zero duty, and Vietnam had an FTA, giving them zero duty access to Europe. India, in the past, faced duties of up to 12%. With this FTA, duties on all textile products will become zero from day one. This allows us to compete on an equal footing, and I see no reason why we should not aspire to achieve $30-50 billion in textile exports, which would create lakhs of jobs in India," he added. India and the European Union (EU) on Tuesday announced the conclusion of negotiations for a Free Trade Agreement (FTA), an important milestone in one of India's most strategic economic partnerships. Designed as modern, rules-based trade partnership, the FTA responds to contemporary global challenges while enabling deeper market integration between the world's fourth and second largest economies. With a combined market estimated at over Rs 2091.6 Lakh Crore (USD 24 trillion), bringing unparalleled opportunities for the 2 billion people of India and the EU, the FTA unlocks significant potential for trade and innovation. The FTA delivers unprecedented market access for more than 99% of India's export by trade value, while preserving policy space for sensitive sectors and reinforcing India's developmental priorities. (ANI)
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