Summary
India and the European Union (EU) have signed a free trade agreement, creating a large market involving about 2 billion people. The deal aims to reduce tariffs and boost trade in goods, services, and investments between the two regions. It still needs legal approval and may become operational next year.
Key Facts
- The trade agreement covers India and the 27-nation European Union.
- The agreement impacts a combined market size of nearly $27 trillion.
- It represents about 25% of the global gross domestic product (GDP).
- Tariffs between India and the EU are expected to be significantly reduced.
- The EU is providing access to 144 services sectors, while India offers 102 subsectors to the EU.
- The deal includes goods, services, and investments in industries like textiles, pharmaceuticals, machinery, and electronics.
- The agreement still requires legal checks in both Brussels and New Delhi.
- The deal could help India and the EU reduce reliance on the U.S. market.
