Commenting on the India-European Union free trade agreement, Union Minister of Commerce and Industry, Mr Piyush Goyal, said that it covers nearly one-third of humanity, accounts for about 25% of global GDP and represents a significant share of global trade, while addressing the World Forum of Accountants organised by The Institute of Chartered Accountants of India (ICAI) in Greater Noida late last week. He added that it was for no small reason the President of the European Commission described the FTA as the “mother of all deals”.
Highlighting the vast potential of the European market, Mr Goyal said that the European Union alone imports goods worth nearly $7 trillion and services worth $3 trillion, together representing a $10 trillion market. He pointed out that India’s current exports are only a small fraction of this potential and emphasised that the opportunities before India are unprecedented and must be seized.
The Minister highlighted that India signed eight free trade agreements in the last four years, reflecting a fundamental shift in the country’s engagement with the global economy. These cover major economies across Europe and other regions, including the 27-nation European Union, the four-nation EFTA bloc comprising Switzerland, Liechtenstein, Norway and Iceland, the United Kingdom, Australia, New Zealand, the United Arab Emirates and Oman. He noted that the deals are opening up new and significant opportunities for Indian talent, skills and young professionals, while strengthening India’s integration with global value chains.
Mr Goyal further disclosed that India will soon conclude a free trade agreement with Chile, which will help secure access to critical minerals. Referring to the agreement with the EFTA countries, he said it includes a commitment of $100 billion in foreign direct investment into India, aimed at supporting infrastructure development, innovation and precision manufacturing. He also highlighted New Zealand’s commitment to invest $20 billion in India over the next 15 years, compared to its total investment of only $70 million over the past 25 years.
The Minister said that these commitments clearly reflect growing global confidence in India’s economic growth trajectory, youthful demographic advantage, skill base and integrity.
He highlighted that India today has strong macroeconomic fundamentals and is the fastest-growing large economy in the world, with high growth rates and low inflation. He said India has a robust banking system and strong foreign exchange reserves. Despite turbulence in global trade markets, India’s exports of goods and services continue to grow, even in the current year. Expressing confidence in the abilities of 1.4 billion Indians, he said the country will continue to grow relentlessly and soon become the world’s third largest economy, as per an official communique.
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