Commerce and Industry Minister Piyush Goyal on December 11 said India is committed to securing a “very good” free trade agreement (FTA) with the European Union, which would open the door for greater imports of wines and automobiles from Italy and boost exports of Indian whisky, auto components, textiles and other products.
Despite the progress, Goyal acknowledged that some hurdles remain. “We are leaving no stone unturned to get some good outcome. We had extensive engagements earlier this week, and there are a few issues we still need to get over the line,” he said.
With strong political guidance from EU member states such as Italy and Prime Minister Narendra Modi’s commitment to the partnership, the two sides can take the FTA “across the finishing line” and resolve the outstanding concerns.
“India is committed to the India-EU FTA that will be a fair and equitable framework, which will be a win-win for both sides,” Goyal at the India-Italy Business Forum in Mumbai.
Goyal said India cannot afford the risks posed by geographically concentrated supply chains.
“Today, many products in sectors like automobiles, textiles and pharmaceuticals are vulnerable because a single company or geography can weaponise that dependence,” he said. “It is therefore important for democracies to work together to provide global markets with competitively priced products.”
Countries should explore mutual recognition agreements to ease compliance burdens for businesses.
“Our firms shouldn’t have to navigate cumbersome quality requirements. We have QCOs (quality control orders), just as you have elaborate certification systems for sectors like fisheries and pharmaceuticals,” he said.
Earlier this week, India and the EU stepped up the long-running FTA negotiations, with Goyal holding talks with European Commissioner for Trade and Economic Security Maroš Šefčovič in New Delhi on December 8 and 9.
The discussions focused on core chapters of the proposed deal, including market access for goods and services and technical barriers to trade, as both sides aim to conclude the pact by early next year.
Commerce secretary Rajesh Agarwal last month said that India aims to wrap up the FTA by early 2026, as talks enter their final phase.
In February, India and the EU decided to ramp up talks, targeting to close it by the end of 2025 to tide over ongoing disruptions from volatile trade policies.
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