Daijiworld Media Network – New Delhi
New Delhi, Jan 17: India and the European Union are set to ink a landmark trade agreement on January 26, with Commerce Minister Piyush Goyal describing it as the “mother of all trade deals,” assuring that none of the 27 EU member states are opposed to the pact.
Speaking to reporters, Goyal said, “The deal would be the mother of all deals, most comprehensive and mutually advantageous for both parties involved.” Officials described the agreement as “comprehensive,” balancing the interests and sensitivities of both sides.
An official added, “New Delhi has secured favourable terms in sectors of interest to India and offered the EU benefits in areas important to them. India and the EU are complementary partners, making this a win-win arrangement.”
On concerns related to the EU’s carbon border adjustment mechanism (CBAM), officials said national interests, including farmers’ interests, have been safeguarded in the negotiations.
The India-EU trade deal, decades in the making, gained momentum after talks were relaunched in July 2022 following a hiatus since 2013. The pact is expected to provide India market access in labour-intensive sectors such as textiles, footwear, and gems and jewellery, while the EU will gain entry for automobiles and beverages.
The agreement also includes provisions to boost long-term investment. India has previously allowed 100 per cent FDI in telecom for the UK, while in insurance, the FDI ceiling was capped at 74 per cent, providing regulatory certainty. Similar strategies were applied in the European Free Trade Association (EFTA) deal, where EFTA nations committed $100 billion in investments over 15 years.
The trade pact reflects the growing urgency to counter China’s dominance in critical sectors, including solar energy and advanced technologies, which affect both Indian and European industries.
Breaking from earlier approaches, the NDA government’s “Look West” trade policy focuses on agreements with developed countries where India and its partners are complementary rather than competing. While a US trade deal remains pending, India has successfully signed pacts with Australia, New Zealand, and the UK.
The India-EU trade deal is widely seen as a strategic partnership aimed at increasing market access, boosting investment, and addressing shared economic and technological challenges.