India and the EU finalize FTA negotiations.

India and the European Union (EU) have officially completed negotiations on a Free Trade Agreement (FTA), marking a significant step forward in bilateral economic relations and considered one of the world's largest trade agreements today.

According to information released by India's Deputy Minister of Commerce, Rajesh Agrawal, on January 26th, this FTA agreement is balanced, forward-looking, and will help strengthen India's economic integration with the EU. The agreement is expected to be officially announced on January 27th and come into effect next year, after the completion of legal review and signing.

The agreement was reached in the context of European Council President Antonio Costa and European Commission President Ursula von der Leyen being invited to New Delhi as the main guests at the parade celebrating the 77th anniversary of India's Republic Day (January 26, 1950 - January 26, 2026) and attending the 16th India-EU Summit. Prime Minister Narendra Modi emphasized that the presence of European leaders demonstrates the strengthening strategic partnership between the two sides.

In a social media post, the European Commission wrote: “Our partnership is built on the shared goal of addressing the world ’s greatest challenges. As we look forward to the EU–India Summit on January 27, we stand ready to take the next step together.”

According to sources, India-EU FTA negotiations have been strongly boosted after both sides agreed to accelerate the process last year. Bilateral talks, which resumed in 2022 after a nine-year hiatus, have accelerated following US President Donald Trump's imposition of import tariffs on several trading partners.

The negotiations focused on key areas such as automobiles, steel, and market access, with India expected to significantly reduce import tariffs on cars from the EU, while the EU considered easing trade barriers on Indian steel. Certain sensitive agricultural and dairy products were excluded from the agreement to protect Indian farmers.

EU Commissioner for Trade and Economic Security Marcos Šefčovič used Ursula von der Leyen's own words to describe this FTA as "the mother of all agreements," arguing that the agreement would create a free trade area encompassing nearly 2 billion consumers, while also opening up significant opportunities for the approximately 6,000 European businesses operating in India. The EU also views this as a strategic step to diversify trade relations and reduce dependence on other major markets.

European Commission Vice President Kaja Kallas also highlighted the strong momentum in India-EU relations across trade, security, and defense cooperation, noting that personnel from the EU naval operations Atalanta and Aspides participated in India's Republic Day parade for the first time.

Analysts believe that the completion of the FTA will not only boost bilateral trade and investment but also elevate the India-EU strategic partnership, contributing to reshaping the global economic structure and supply chains during this period of significant change.

Source: https://vtv.vn/an-do-eu-hoan-tat-dam-phan-fta-100260127091956038.htm