India-EU Free Trade Deal Set for January 27 Signing
India and the European Union are poised to sign a landmark free trade agreement on January 27, 2025, ending nearly two decades of negotiations. The deal is expected to be inked during European Commission President Ursula von der Leyen’s upcoming visit to New Delhi.
Key Takeaways
- The India-EU Bilateral Trade and Investment Agreement (BTIA) is scheduled for signing on January 27.
- Talks began in 2007, stalled in 2013, and resumed in 2021.
- The pact aims to significantly boost trade and investment between the two major economies.
A Long Road to Agreement
Negotiations for the Bilateral Trade and Investment Agreement (BTIA) started in 2007 but hit a roadblock in 2013. Key sticking points included tariffs on automobiles and spirits, as well as regulations concerning the movement of skilled professionals. After an eight-year hiatus, formal talks restarted in 2021, paving the way for the imminent conclusion.
Significance of the Trade Pact
The agreement is projected to provide a major boost to bilateral trade and investment flows. The European Union holds a critical position in India’s trade landscape, being its second-largest trading partner after the United States. In the 2021-22 fiscal year, two-way trade between India and the EU amounted to USD 116.36 billion. Furthermore, the EU bloc ranks among the top foreign investors in the Indian economy.
The finalization of this deal marks a significant step in strengthening economic ties between India and one of the world’s largest trading blocs.
