India-EU Trade Deal Can Make ‘Big Difference’ to Stabilize World Economy: Jaishankar
External Affairs Minister Dr. S. Jaishankar has emphasized the potential of the proposed India-European Union (EU) trade deal to bring stability to the global economy. Speaking at a recent high-profile event, he described the long-pending agreement as a “game-changer” for India, the EU, and the world amid ongoing geopolitical tensions and supply chain disruptions.
Why the India-EU Trade Deal Matters
1. A Deal Years in the Making
The India-EU Free Trade Agreement (FTA), officially called the Broad-Based Trade and Investment Agreement (BTIA), has been under negotiation since 2007. Progress stalled due to disagreements on market access, tariffs, and intellectual property rights. However, recent global shifts—such as the Russia-Ukraine war, China’s economic slowdown, and Western efforts to diversify supply chains—have revived talks.
Jaishankar noted that a strong India-EU pact would enhance “trust and transparency” in global trade, reducing dependency on volatile regions.
2. Key Benefits of the Agreement
- Reducing Reliance on China: The EU seeks to diversify trade away from China, while India aims to attract investments in pharmaceuticals, IT, and automobiles.
- Boosting Indian Exports: India exported $65 billion worth of goods to the EU in 2022-23. Lower tariffs on textiles, leather, and agriculture could widen this gap.
- Strengthening Supply Chains: The deal could make supply chains more resilient in critical sectors like semiconductors, renewables, and pharmaceuticals.
3. Challenges to Overcome
Despite optimism, hurdles remain:
– Market Access: The EU wants better entry into India’s services sector, while India seeks easier mobility for professionals.
– Regulatory Differences: Standards on food safety, data protection, and environmental norms could slow progress.
– Domestic Pushback: Indian farmers and small businesses fear EU imports could harm local industries.
What’s Next for the India-EU Trade Deal?
Both sides aim to fast-track negotiations, with the next round expected in late 2024. If successful, the deal could be finalized by 2025, becoming one of the most significant trade pacts of the decade.
Conclusion
As Jaishankar stated, the India-EU trade deal isn’t just about bilateral gains—it could help shape a more stable and multipolar global economy. With geopolitical tensions reshaping trade, this agreement may position India as a central player in the new economic order.
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