The free trade agreement between India and the European Union is being considered as a step to change the direction of the global economy. This historic agreement has been named Mother of All Deals. This agreement has been signed between two such big economies, whose combined share is about 25 percent in the total economy of the world. This agreement signed in New Delhi is being considered a big success for India not only economically but also at the geopolitical level.

This deal has come at a time when America’s Trump administration has tried to put pressure on India by imposing tariffs up to 50 percent. In such an environment, India’s signing of such a big agreement with the European Union shows that India is now deciding its own options on the global stage. After this agreement, uneasiness is clearly visible in America.

Why India-EU Free Trade Agreement is historic

Negotiations on this free trade agreement between India and the European Union were going on for many years. With this agreement, India will get better access to European markets, which is expected to increase exports, bring foreign investment and create new employment opportunities. The European Union is already one of India’s major trading partners. This deal will reduce trade tariffs between the two sides, strengthen the supply chain and promote cooperation in areas like technology, manufacturing and green energy. Experts believe that this will help India reduce its dependence on China and establish itself as a global manufacturing hub.

America’s displeasure, no relief from tariffs for India

America’s reaction after the India-EU agreement has been quite strict. Trump administration’s trade representative Jameson Greer has clearly said that India is not going to get any relief in tariffs from America at present. In an interview with Fox Business, Greer said that America’s concerns regarding oil purchases from Russia are not over yet. According to him, India has definitely reduced the purchase of Russian oil, but it is not yet possible to completely separate from it. Greer said that the cheap oil from Russia is economically beneficial for India and that is why it is not easy for India to give up this supply immediately.

America’s stance changed on Russian oil

This statement of Greer seems different from America’s earlier statements. Earlier, it was said by the Trump administration that India has almost stopped purchasing oil from Russia. President Donald Trump himself has also given such statements. Recently, during the Davos Economic Forum, US Finance Minister Scott Besant had indicated that there may be some relief in tariffs imposed on Indian products in the future. But now it has become clear from the latest statement of Jameson Greer that America wants to maintain pressure on India for the time being.

Also read: India-EU FTA: Trump left alone, India will become the new king! After EU, Brazil and Canada will make a big deal with India