Commerce Minister Piyush Goyal said the India-European Union Free Trade Agreement is a win-win for all parties. He expects the final deal to be signed by late 2026. "It shows that it has been negotiated and finalised in a manner in which everybody is a gainer," the minister said.
Goyal talked about India's market of 1.4 billion people and an aspirational middle class.
The India-European Union Free Trade Agreement (FTA) is a 'win-win' for all parties, making Europe critical in New Delhi's journey towards 'Viksit Bharat (developed India) by 2047, said Commerce Minister Piyush Goyal, who is on a five-day bilateral visit to Germany and the Netherlands. Talking to NDTV, Goyal said the trade deal with the EU is on course to become the fastest agreement the bloc has ever entered into.
India and the 27-nation European Union announced the conclusion of negotiations for a free trade agreement on January 27, which is touted as the "mother of all deals". The EU is already a leading investor in India. About 6,000 European firms are present in India.
Goyal laid out a timeline for the pact, saying the final legal agreement should be signed and executed before the end of 2026, and it could enter into force by March or April 2027 with the backing of all 27 EU member nations.
"It shows that it has been negotiated and finalised in a manner in which everybody is a gainer," the minister said, calling it a win-win agreement. He said industry and business in India are excited about the opportunities it opens up across goods, services, investments, technology partnerships, talent and education.
The FTA is only the start, he said, adding that an investment agreement and a Geographical Indications agreement with the EU are to follow later. "All in all, Europe is going to become a very critical and important partner in our journey towards Viksit Bharat 2047," Mr Goyal said.
Widening the Trade Net
The minister has said that, taken together, the FTAs India has already concluded and those still under negotiation, could account for 76 per cent of global GDP -- a combined figure of around $85 trillion -- within the next year and a half.
Asked which regulatory issues must be addressed as India takes the next step, particularly with the European Union, Goyal turned the question towards compliance burdens, which he said Prime Minister Narendra Modi has made a priority to reduce.
Goyal added that the government is easing complex regulatory processes and procedures to encourage investment and help businesses grow, which he described as the route to prosperity for businesses worldwide. He then made a pointed observation about Europe.
"Sadly, some of these countries, particularly in Europe, are casting a very heavy regulatory burden on their industry," he said, adding that he believes this will hurt European businesses. He was careful to frame it as a matter for Europe to decide.
"That's their domestic issue, and it's a sovereign right of every nation," he said, but he argued it would ultimately benefit Indian businesses and draw more investment towards countries like India.
Goyal also pointed to India's market of 1.4 billion people and an aspirational middle class. With the economy projected to grow from $4 trillion to $30 trillion by 2047, he said India will be "a compulsive business proposition."
That, he said, will draw investment from across the world and bring in people who want to trade with India and buy from India, helping create new jobs at home.
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