Mother Of All Deals: India-EU Pact Powers A 2-Billion-People Market

At the World Economic Forum in Davos, European Commission President Ursula von der Leyen confirmed that India and the EU are close to concluding their long-pending Free Trade Agreement (FTA). The deal, expected to be announced at the upcoming India-EU summit, is being hailed as transformative for both economies and global trade.  

Economic Significance  

• The pact will create a combined market of 2 billion people, accounting for almost 25 percent of global GDP  
• EU is already India’s largest trade partner, with bilateral trade in goods valued at $135 billion in FY 2023-24  
• The agreement is expected to boost exports, attract investments, and enhance competitiveness for Indian industries  

Strategic Importance  

• The deal strengthens India’s position in global supply chains and reduces dependence on other trade blocs  
• It enhances cooperation in clean energy, digital trade, and sustainable development  
• EU leaders, including Ursula von der Leyen and Antonio Costa, will attend India’s Republic Day celebrations, underscoring the partnership’s political weight  

Future Outlook  
The FTA is set to reshape India-EU relations, opening new opportunities for businesses and consumers  
Challenges remain in harmonizing standards and addressing sensitive sectors, but momentum suggests a breakthrough is imminent  

Sources: Republic World, New Indian Express, Economic Times, Firstpost