Mumbai’s financial circles are buzzing with optimism as National Stock Exchange (NSE) CEO and MD Ashish Chauhan hailed the impending India-EU Free Trade Agreement (FTA) as a game-changer for job creation. Speaking on Tuesday, Chauhan emphasized that the deal will open up European markets more easily for India’s labor-intensive industries, paving the way for a surge in employment opportunities.
Dubbed the ‘mother of all trade deals’ by both sides, this FTA lives up to its billing. The combined economies of India and the EU account for 25% of global GDP, with bilateral trade already hitting $220 billion—$135 billion in goods and $85 billion in services. Chauhan noted that as multilateral trade wanes, forging bilateral pacts with major economies like the EU is a strategic masterstroke.
Prime Minister Narendra Modi, announcing the FTA, described it not just as a trade pact but a blueprint for shared prosperity. It will ease access to European markets for Indian farmers and small industries, spark new manufacturing hubs, and deepen service sector ties.
On the upcoming budget, Chauhan tempered expectations, saying sectoral hopes must align with fiscal realities. The BJP government has maintained ironclad fiscal discipline, even during COVID, and investors are eyeing cuts in LTCG tax, STT, and STCG taxes. Ultimately, relief will hinge on revenue collections and spending plans.
This FTA couldn’t come at a better time. With India’s young workforce eager for opportunities, labor-heavy sectors like textiles, gems, and agriculture stand to gain immensely. As negotiations progress, the deal promises to redefine India’s global trade footprint, fostering inclusive growth and millions of new jobs.