Synopsis : Commerce Minister Piyush Goyal says the upcoming India–EU trade agreement will be the most comprehensive and mutually beneficial deal ever, with no opposition from any of the 27 EU member states. Expected to be signed on January 26, the pact aims to boost trade, investment, and strategic cooperation across multiple sectors.
Describing the proposed India–European Union trade agreement as the “mother of all trade deals,” Commerce Minister Piyush Goyal on Friday said that none of the 27 EU member nations have opposed the pact. The agreement, expected to be signed on January 26, is set to become one of the most comprehensive bilateral trade arrangements India has ever concluded.
According to Goyal, the deal will balance the interests and sensitivities of both sides while unlocking long-term economic opportunities. “None of the EU states, in various high-level meetings, has opposed the trade agreement with India. The deal would be the mother of all deals, most comprehensive and mutually advantageous for both parties involved,” he said.
Win-Win Partnership Across Key Sectors
Government officials indicated that India has secured favorable terms in sectors of strategic importance, while the EU has also gained access in areas it values. Since the two economies are largely complementary rather than competitive, the partnership is expected to generate mutual growth.
India is targeting greater access in labour-intensive sectors such as textiles, footwear, gems and jewellery, while the EU is seeking improved market entry for automobiles and beverages. The agreement is also expected to address regulatory clarity to attract long-term European investments into India’s manufacturing ecosystem.
Investment Commitments and FDI Reforms
A major feature of India’s recent trade strategy has been linking tariff concessions to investment commitments. Similar to earlier agreements with the UK and the European Free Trade Association (EFTA), India is working on frameworks that provide regulatory certainty for foreign investors, including clarity on sectors allowing 100% foreign direct investment.
Conditions such as local employment generation, domestic value addition, and use of local raw materials are also part of the ongoing negotiations. Officials said this approach strengthens domestic manufacturing while attracting global capital.
Geopolitical and Strategic Drivers
The renewed urgency behind the deal comes amid shifting global trade dynamics following protectionist policies adopted by the United States. Both India and the EU are also keen to diversify supply chains and reduce dependency on China, especially in critical technologies and renewable energy manufacturing.
Concerns around carbon regulations such as the EU’s Carbon Border Adjustment Mechanism (CBAM) have been addressed during negotiations, with Indian officials confirming that national and farmer interests have been safeguarded.
A Deal Decades in the Making
Negotiations for the India–EU trade agreement began in 2007, stalled in 2013, and were relaunched in 2022. With talks now nearing completion, policymakers believe the pact could redefine India’s trade engagement with developed economies and significantly boost exports, investments, and technology partnerships.
Disclaimer : This article is for informational purposes only and does not constitute financial, legal, or investment advice. Readers are encouraged to verify facts independently and consult professionals for decision-making.
