India-EU FTA in jeopardy? Here's why

The United States (US) and the European Union (EU) have launched negotiations on a mega free trade agreement (FTA), which in turn could impact the ongoing talks between India and the EU on a similar trade pact. Announcing the US-EU FTA talks, UK's prime minister David Cameron said that the trade deal will add 100 billion UK pound to the EU economy, about 80 billion UK pound to the US economy and another 85 billion UK pound to the rest of the world.

Also read: India holds back on FTA commitment to China Cameron also added that the US-EU FTA will lead to two million extra jobs. Significantly, EU had been pushing for an early conclusion of the India-EU FTA, saying that once it starts negotiations with us and Japan on free trade pacts, it will go also on the India-EU FTA talks. The India EU FTA talk is stuck, as the customs union has demanded 49 percent FDI in insurance for its companies. India has maintained that FDI in insurance cannot be hiked without Parliament's approval.