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India-EU FTA Pact
The India-EU free trade pact will be credit positive for India as lower tariffs and better market access will help attract foreign investment, boost manufacturing and boost export competitiveness of the labour intensive sector, Moody's Ratings has said. India and the European Union on Wednesday had announced the conclusion of negotiations for the Free Trade Agreement (FTA), described as 'mother of all deals', under which 93 per cent of Indian shipments will enjoy duty-free access to the 27-nation bloc, while import of luxury cars and wines from the EU will become less expensive. The deal, concluded after negotiations spanning about two decades, will create a market of about 2 billion people across the world's fourth-largest economy, India, and the second-largest economic bloc, the EU. In a commentary, Moody's Ratings said India's conclusion of its trade negotiations with the EU reflects its continued efforts to selectively diversify trade relationships. "When in effect, the FTA wil
Lower tariffs under the India-EU free trade agreement will significantly strengthen the position of Indian formulations, APIs, and value-added medicines in the European Union, Pharmexcil Chairman Namit Joshi said on Tuesday. For the domestic pharmaceutical sector, the agreement delivers structural competitiveness, he stated. "Near-zero tariff access significantly strengthens the position of Indian formulations, APIs, and value-added medicines in the EU, a development that is particularly consequential for India's pharma MSMEs, many of whom possess strong quality capabilities, but face cost and access barriers in highly regulated markets," Joshi said in a statement. Reduced tariffs and smoother market entry will directly enhance their ability to scale exports, invest in compliance, and integrate into European supply chains, he added. "Crucially, this agreement enables stable, long-term, and predictable pharmaceutical trade, benefiting European healthcare systems and consumers throug
The "game-changer" free trade agreement (FTA) between India and the European Union (EU) is set to unlock significant trade and investment opportunities for the country in the high-potential market of the 27-nation bloc, which remained untapped and boost India's export competitiveness, industry bodies said on Tuesday. The European Union and India on Tuesday announced the conclusion of negotiations for the free trade agreement (FTA) here. CII Director General Chandrajit Banerjee said the landmark agreement represents a strategic breakthrough in India's global trade engagement and significantly deepens the partnership between two major democracies and economies that together account for nearly 25 per cent of global GDP. "The unprecedented preferential access secured for over 99 per cent of Indian exports is a game-changer for Indian industry. It decisively improves competitiveness in the EU's high-value market, anchors Indian manufacturers and service providers deeper into global value
Zero-duty access under the India-EU Free Trade Agreement could help double the bilateral gems and jewellery trade to USD 10 billion (around Rs 91,000 crore)over the next three years, the Gem and Jewellery Export Promotion Council (GJEPC) said on Tuesday. This removes 2-4 per cent duties on precious jewellery, unleashing huge export potential with the 27-member EU countries, home to the world's elite buyers. "The India-EU FTA will supercharge market diversification for the gem and jewellery industry. This transformative pact aims to double bilateral trade to Rs 91,000 crore within three years. "Zero-duty access to the world's largest consumer market empowers export hubs in Gujarat, Rajasthan, Maharashtra, and West Bengal to ramp up shipments of precious jewellery (plain and studded), silver, and imitation jewellery, capitalising on India's renowned design prowess," GJEPC chairman Kirit Bhansali said. The European Union and India on Tuesday announced the conclusion of negotiations fo
Bharti Enterprises Chairman Sunil Mittal on Tuesday exuded confidence that the India-EU FTA will open new avenues for collaboration, especially in digital infrastructure and space connectivity, and offer European investors a compelling opportunity to innovate and scale with India for global markets. The agreement also opens opportunities for Indian companies like Airtel to invest in the digital infrastructure in Europe, the telecom sector stalwart said in a statement. The comment comes in the backdrop of India and the European Union (EU) concluding the negotiations for a Free Trade Agreement (FTA) on Tuesday, marking an important milestone in one of New Delhi's most strategic economic partnerships. With a combined market estimated at over Rs 2,091.6 lakh crore (USD 24 trillion), bringing opportunities for the 2 billion people of India and the EU, the FTA promises to unlock significant potential for trade and innovation. The landmark free trade agreement -- which is being billed as
The EU has not provided any concessions to India on its carbon regulations in the trade pact, but has agreed that any relaxations granted by the 27-nation bloc to other countries under the CBAM provisions will automatically extend to Indian exporters, an official said on Tuesday. The free trade agreement also provides for a rebalancing of rights in case the EU's measures under this regulation impair pact benefits to Indian firms or if it fails to establish the grounds for the same. Carbon Border Adjustment Mechanism (CBAM) or the carbon tax, which came into effect on January 1, was one of the contentious issues of the trade pact between India and the European Union (EU). Under the mechanism, the EU will impose a carbon tax on goods such as steel, aluminium, fertiliser and cement as they emit carbon beyond a specified threshold during manufacturing. Presently, the tax applies to steel and aluminium products. "CBAM is a difficult issue. It is a horizontal regulation without any ...
The India-EU FTA will strongly drive technological innovation within the Indian automotive sector, Mercedes-Benz India MD and CEO Santosh Iyer said on Tuesday, while ruling out any price reduction of the company's vehicles in the foreseeable future after the deal. Terming the Indo-EU FTA as a historic achievement for India, Iyer said the pact reiterates the "rising relevance of the Indian economy at a global stage". "The FTA is also expected to strongly drive technological innovation and sustainable growth within the Indian automotive sector, with a sharp focus on future mobility. Saying that, the final implications of the FTA can only be determined once the fine print of the agreement is available to us," he added. On the impact of the FTA on prices of vehicles, Iyer said, "With more than 90 per cent of Mercedes-Benz India's sales volume comprising 'Made in India' locally manufactured models, and only around 5 per cent of sales coming via CBU imports from the EU, we do not foresee
India will get an "unprecedented" market access at concessional duties for over 99 per cent of its exports by value in the European Union (EU) market, providing a boost to domestic labour-intensive sectors, Commerce and Industry Minister Piyush Goyal said on Tuesday. The two sides announced on January 27 the conclusion of negotiations for the free trade agreement (FTA). "India and the EU, under the leadership of PM @NarendraModi ji, European Commission President @VonderLeyen and European Council President @AntonioCostapm have inked the 'Mother of all Trade Deals'," he said in a social media post. Goyal said that the pact is a strategic breakthrough in the country's global trade engagement, unlocking vast opportunities in the USD 20 trillion EU market for 1.4 billion people. "It is a deal that gives unprecedented market access for over 99 per cent of our exports by value, providing a massive impetus to our labour-intensive sectors and bolstering Make In India," the minister said. T
European wines are set to enter the Indian market at lower prices under the bilateral free trade agreement as India will provide import duty concessions under the pact, an official said. Under the pact, the duty on EU wines would fall from 150 per cent to 20 per cent (for expensive ones). For wines below 2.5 euros, there will be no duty concessions. Indian wines, too, will get duty concessions in the EU member countries. India and the European Union (EU) on Tuesday announced the conclusion and finalisation of negotiations for a free trade agreement. The agreement is expected to be signed later this year and may come into force from early next year. The talks were concluded after 18 years. The negotiations started in 2007. Under the agreement, India will be giving duty concessions to the wines of the European Union (EU) in line with what it has agreed for Australia and New Zealand, but with slightly lower thresholds. It was a key demand for the EU. The official said Indian wine t
India and Europe have concluded the "mother of all" trade deals, European Commission President Ursula von der Leyen said on Tuesday as Prime Minister Narendra Modi and the top EU leadership held summit talks to elevate the two-way ties to jointly navigate geopolitical turbulence and trade disruptions. Prime Minister Modi hosted von der Leyen and European Council President Antonio Costa at the summit. "Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit," Von der Leyen said. "This is only the beginning. We will grow our strategic relationship to be even stronger," she said. The two EU leaders graced the 77th Republic Day celebrations at the Kartavya Path as chief guests on Monday. The long-awaited free trade agreement is expected to significantly expand the overall trajectory of two-way engagement as it will open up new opportunities for cooperation in diverse .