India-EU trade pact to impact two billion people globally

The proposed India-European Union Free Trade Agreement (FTA) is expected to cover nearly one-third of global trade and impact around 2 billion people, making it one of the world’s largest trade pacts, Additional Secretary in the Department of Commerce Darpan Jain said on Thursday.Addressing a Federation of European Business in India (FEBI) event titled “Decoding EU-India FTA,” Darpan Jain described the proposed agreement as the “mother of all deals” because of its economic scale and global significance.“On parameters such as size of trade, size of economy and the number of people it touches, it is one of the biggest deals,” Jain said.He noted that the India-EU FTA is expected to cover nearly one-fourth of global GDP and around USD 11 trillion in trade.
Jain stated, the agreement will extend beyond tariff reductions and include areas such as trade in goods and services, digital trade, telecom, financial services, intellectual property rights and regulatory practices.Highlighting India’s expanding services sector, he said services exports have grown at nearly double the pace of goods exports over the past decade.“India’s goods exports stood at USD 442 billion, while services exports reached USD 421 billion this year,” he added.Industry leaders at the event said the agreement could significantly boost manufacturing, investments and supply chain integration between India and the European Union.
BMW Group India President and CEO Hardeep Singh Brar said the FTA could reshape India-EU automotive trade through tariff rationalisation and stronger supply chain partnerships.
“As you know, imports today attract duties of 110 per cent for cars priced above USD 40,000. In the first year after implementation, the duty could come down directly to 40 per cent,” Brar said.He added that several European firms are increasingly viewing India as a competitive and high-quality supply chain destination.“At the same time, clarity on implementation timelines and quota mechanisms is important, as delays could lead customers to postpone purchases in anticipation of lower prices,” he said.

#WATCH | Delhi: While attending the Federation of European Business in India (FEBI) meet on 'Decoding the EU-India FTA', President and Chief Executive Officer of BMW Group India, Hardeep Singh Brar says, "I see a lot of opportunities... This trade agreement on both sides will… pic.twitter.com/WUhIzKx1Zp

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Biesse India CEO Sayeed Ahmed said the agreement would support India’s manufacturing ambitions by improving access to advanced European machinery and industrial technologies.“Europe has strengths in precision engineering, automation and advanced manufacturing technologies, which can become the backbone of India’s industrial growth,” Ahmed said.He also highlighted India’s growing role as a manufacturing and export base for European companies.“We export to nearly 80 countries from India, and around 80 per cent of what we manufacture here is designed in India and exported globally,” he said.
During the event, a report titled “Economic Footprint of EU Businesses in India” was released,according to information. The study showed that 5,833 European Union firms are currently operating in India, generating an estimated turnover of EUR 186 billion in FY24.The report stated that EU firms generated nearly 6 million jobs in India, including 3.7 million direct jobs, while goods exports linked to EU companies stood at EUR 23.5 billion in 2024.It further noted that India-EU goods trade reached EUR 120 billion in 2024, nearly doubling over the past decade, making the European Union India’s largest trading partner in goods.

(Business Correspondent)