New Delhi’s landmark free trade agreement with the European Union is set to give India a significant edge in its ongoing bilateral trade negotiations worldwide. Experts hailed the deal on Wednesday as a game-changer amid rising global trade tensions.
Mahavir Pratap, former chairman of the Carpet Export Promotion Council (CEPC), emphasized that the India-EU FTA will supercharge India’s exports at a critical juncture. With the United States increasingly weaponizing trade policies, this pact positions India favorably for future deals. ‘Europe is the next largest developed market after the US,’ Pratap noted, highlighting zero import duties on labor-intensive sectors like leather, textiles, and carpets. This will create substantial job opportunities across India.
Srikant Rao from the Indian Coffee Roasters Association called it a monumental agreement. Europe remains the biggest market for Indian coffee, and the FTA will unlock export growth. Businesses can now invest confidently in machinery and value-added products with a long-term horizon, he added.
K.M. Subramaniam of Tirupur Exporters Association welcomed the deal after two decades of negotiations. Tirupur exports apparel worth Rs 45,000 crore annually, with 20% heading to 27 European nations. Implementation could drive a 15% export surge in the first year alone.
Dubbed the ‘Mother of All Deals,’ the India-EU FTA represents 25% of global GDP and impacts nearly 2 billion people. As India navigates a protectionist world, this agreement fortifies its trade strategy, promising economic growth, jobs, and diversified markets.