DBT Bureau
Pune, 12 Dec 2024
The Union Minister of Commerce and Industry, Piyush Goyal, interacted with the Ambassadors of the European Commission delegation, as well as those from Austria, Belgium, Bulgaria, the Czech Republic, Estonia, Italy, Ireland, Latvia, Lithuania, Malta, Poland, Portugal, Romania, the Slovak Republic, Spain, and Sweden. The meeting was attended by the Minister of State for Commerce and Industry, Jitin Prasada, the Commerce Secretary, the Secretary of DPIIT, and other senior officials.
Discussing the growing proximity and rising trade between India and the EU, Piyush Goyal stated that both sides aim for a balanced, ambitious, comprehensive, and mutually beneficial Free Trade Agreement (FTA). The FTA negotiations, after nine rounds of intense engagement, now require political direction to arrive at a commercially meaningful deal while understanding each other’s sensitivities. The Minister further emphasized that any discussions on sustainability must respect the principle of Common But Differentiated Responsibility (CBDR), with the implementation of such measures taking into account differing paths of development. He added that the Indian economy is expected to grow at 7-8% annually and become the third-largest economy in the world over the next few years. Rapid and exponential growth would then help India’s GDP reach the milestone of $35 trillion by 2047.
Acknowledging the large and untapped economic potential, the European side highlighted that both sides would gain significantly by integrating their economies and building resilience in their supply chains. The interaction also provided an opportunity to discuss progress in the India-EU Trade and Technology Council. India is the only country, other than the United States, with which the EU has such a mechanism.
India’s bilateral trade in goods with the EU reached USD 137.41 billion in 2023-24, making the EU India’s largest trading partner for goods. Additionally, bilateral trade in services between India and the EU was estimated at USD 51.45 billion in 2023. The trade agreement with the EU would help India further expand and diversify its exports of goods and services while securing its value chains. India is seeking to forge balanced agreements with major world economies to increase its market share in global trade.
