By Admin 
India and the European Union (EU) have finally completed the long ongoing negotiations regarding a Free Trade Agreement (FTA). This agreement is considered important for increasing trade and strengthening economic relations between the two biggest economies of the world. Both sides have described this deal as balanced and keeping the future in mind. This has also been formally announced today.
Antonio Costa said – strong political message against tariffs
European Council President Antonio Costa said the agreement sends a clear political message to the world against rising tariffs and protectionism. He said that this step of India-EU is very important amidst the uncertainty that has arisen at the global level due to the policies of US President Donald Trump.
India-EU closeness necessary: Costa
Antonio Costa said while talking to Hindustan Times, ‘In today’s multipolar world, it is necessary that India and the European Union come closer. Together we can become a strong partner providing stability, trust and security in international relations and safeguarding the rules-based global order. Costa attended the Republic Day celebrations as the chief guest along with European Commission President Ursula von der Leyen.
The agreement is being described as the ‘Mother of All Trade Deals’
The European Union is India’s largest trading partner. The EU chief himself has called this free trade deal the ‘Mother of All Trade Deals’. It is believed that this will increase trade and investment especially in those areas which have been affected by Trump’s tariffs.
agreement to stabilize geopolitics
Antonio Costa said that this trade agreement is very important not only economically but also geopolitically.
He said, “This shows how trade can be protected based on international rules. This is a strong stabilizing agreement.”
Message of ‘trust on trade, not tariffs’
According to Costa, the India-EU agreement will send a message to the world that India and the EU believe in trade agreements rather than tariffs. This is happening at a time when many countries are moving towards protectionism and increasing tariffs.
Current India-EU trade figures
In the financial year 2024-25, trade in goods between India and the European Union stood at $136.53 billion. In this, India’s export was 75.85 billion dollars and import was 60.68 billion dollars. In the services sector, trade between the two will be worth $83.10 billion in 2024.
How much tax is levied on whom?
At present, the average tax on Indian goods in EU is 3.8 percent, but in labor intensive sectors it is up to 10 percent. Whereas in India there is an average tax of 9.3 percent on goods coming from EU. There is a duty of 35.5 percent on cars and their parts, 10.4 percent on plastics, and about 9.9 percent on chemicals and medicines.
Which sectors will benefit from FTA
When this free trade agreement is signed by the end of this year, many products from labour-intensive sectors like textiles, chemicals, gems and jewellery, electrical machinery, leather and footwear will get the opportunity to trade without duty or at reduced duty.