'Mother of all deals': EU Commission's crucial step advances India-EU free trade agreement | India News - Hindustan Times
The European Commission has advanced the India‑EU free‑trade agreement to the EU Council for final approval, paving the way for reduced tariffs on cars, wine and farm goods. Both Brussels and New Delhi see the deal as a landmark opportunity, but its ultimate success depends on resolving outstanding regulatory and sustainability issues.
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The European Commission has advanced the India‑EU free‑trade agreement to the EU Council for final approval, paving the way for reduced tariffs on cars, wine and farm goods. Both Brussels and New Delhi see the deal as a landmark opportunity, but its ultimate success depends on resolving outstanding regulatory and sustainability issues.
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**EU Commission Gives Green Light to India‑EU Free Trade Deal Draft**
The European Commission announced on Thursday that it will forward the final text of the India‑EU Free Trade Agreement (FTA) to the EU Council for formal approval, marking the “mother of all deals” in the bloc’s trade agenda. The draft, negotiated over three years, proposes a phased reduction of tariffs on a range of European goods—including automobiles, wines and certain farm products—while granting India greater market access for its services sector, information‑technology exports and textiles. In exchange, the EU will receive concessions on Indian agricultural commodities such as mangoes, rice and spices, with tariff cuts scheduled to take effect over a ten‑year horizon.
Indian officials welcomed the development, describing it as a “historic step toward deeper economic partnership” that could boost bilateral trade, which stood at roughly €115 billion in 2023, by up to 30 % over the next decade. Trade Minister Piyush Goyal highlighted the deal’s potential to attract European investment in Indian manufacturing and renewable‑energy projects, while the European side emphasized the agreement’s alignment with the EU’s “green and digital” strategic objectives. Both parties, however, acknowledged that sensitive issues—most notably European concerns over Indian food‑safety standards and India’s demand for greater flexibility on sustainability clauses—remain under discussion and will need to be resolved before the Council’s vote.
The next milestone is the EU Council’s formal endorsement, expected by early 2025, after which the agreement must be ratified by the European Parliament. In New Delhi, the government has already begun internal consultations with state authorities and industry bodies to assess the impact of tariff liberalisation on domestic producers. Analysts warn that while the FTA promises significant economic gains, its success will hinge on the ability of both sides to address lingering regulatory divergences and to implement complementary reforms in areas such as customs procedures, digital trade rules and sustainable development commitments.
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