The trade negotians between India and the European Union (EU) are at a never-before like momentum currently, said Maroš Šefčovič, Commissioner for Trade and Economic Security, today. He stated that this is going to be a groundbreaking free trade agreement (FTA).
"Geopolitics and global trade, as we once knew them, are being disrupted. We therefore need to embrace the opportunities of this new reality while also protecting ourselves from risks and unpredictable events. That is why the EU and India are working together to unlock investment, reduce barriers, expand market access, improve supply chains, and do so in ways that benefit both sides," Šefčovič added.
Šefčovič spoke at the 65th ACMA Annual Session, which was also attended by Union Commerce and Industry Minister Piyush Goyal. He said the automotive industry will be clear winner from the India-EU deal once finalised.
"We will not agree on everything. But as major democracies in an uncertain world, there are many areas where we can work together," Šefčovič noted.
Thr EU Trade Commissioner also acknowledged that the 27-nation bloc shares a mutual interest in engaging more closely on both bilateral and global issues.
The talks are happening amid US President Donald Trump's call to EU leaders to impose 100% tariffs on India and China for buying Russian oil. Trump has imposed a 50% tariff on most Indian goods entering the US including a 25% penalty over New Delhi's ties with Moscow.
India and the EU started free trade discussions in 2021 after a prolonged pause and are working to get a deal through by the end of this year.
Šefčovič is currently in New Delhi to further the talks on their long anticipated FTA.
"The entire European Union, a 27-nation bloc and the second largest economy in the world as a whole, is someone we look forward to having a very robust, fair, equitable, balanced and mutually beneficial win-win partnership with – in terms of an enduring free trade agreement," Goyal added.
The commerce minister also exude confidence that any company of scale or significance will find it attractive to work in India, to set up manufacturing in India. Goyal also lauded the auto industry for being the torch bearer of Make in India programme.
The minister further highlighted that India aspire to grow from 34 cars per thousand people today to about 200 per thousand in the near term. "The US has 850 cars per thousand. What would it mean for the auto component industry if we reached that stage? Maharashtra alone is already producing billions in wealth through listed companies in our booming stock market," he said.
The India-US FTA is expected to strengthen their strategic partnership — not only in prosperity and supply chains, but also in climate goals, emerging technologies, security and defence.
