India-EU FTA: On one hand, tension is increasing between America and France, where Donald Trump is seen openly targeting French President Emmanuel Macron. Here, India has played a big bet amidst this global turmoil. In fact, India and EU have come very close to a ‘historic trade agreement’. There is also a possibility of its announcement next week. European Commission President Ursula von der Leyen herself called it the ‘Mother of All Deals’.
At the World Economic Forum (WEF) Davos, European Commission President Ursula von der Leyen made a big statement regarding the Free Trade Agreement (FTA) with India. He said that this historic agreement will create a market of 2 billion people, which will be almost a quarter of the global GDP. Von der Leyen clarified that some work remains, but an agreement is very close.
In fact, on the occasion of Republic Day (26 January), European Commission President Ursula von der Leyen will visit India on 25-27 January. He and European Council President Antonio Costa will be the chief guests of the Republic Day. At the same time, the completion of this FTA is likely to be announced in the summit talks with Prime Minister Narendra Modi on January 27.
EU Commission Chief said that I will visit India. There is still much work to do, but we are on the brink of a historic trade deal. Some people call it the mother of all agreements ever made.
Already the European Union is India’s largest trade partner. Bilateral trade between the two was worth $135 billion in the financial year 2023-24. Whereas talks on India-EU trade agreement were started again in 2022, which has now reached the final stage.
This deal is happening at a time when US President Donald Trump is trying to bring many countries to their knees by weaponizing tariffs. Both India and the European Union are affected by Trump’s aggressive tariffs. America has already imposed a huge tariff of 50% on India. At the same time, Trump has announced tariffs on 8 European countries, which include Denmark, Norway, Sweden, France, Germany, Netherlands, Finland and the United Kingdom (UK). In such a situation, India’s deal with the European Union can spoil Trump’s plans.