Summary
India and the European Union have agreed on a major trade deal to create a large free trade zone, encompassing about two billion people. This deal is expected to boost trade significantly between the two regions, particularly benefiting sectors like textiles, gems, and leather goods in India. The agreement will lead to reduced tariffs on many EU exports to India, and is set to be implemented within a year following legal procedures.
Key Facts
- India and the European Union have reached a deal to form a huge free trade zone covering two billion people.
- The agreement was announced by European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi.
- The deal covers around 25% of the global gross domestic product (GDP).
- EU exports to India are expected to double by 2032 because of the agreement.
- Tariffs on 96.6% of EU goods exported to India will be eliminated or reduced.
- The agreement will reduce costs for EU products by up to 4 billion euros annually in duties.
- The deal is expected to be formalized after legal procedures, taking five to six months, and implemented within a year.
- Talks on the deal had started in 2007 but gained momentum after the geopolitical changes following Russia's actions in Ukraine.
