A Historic Partnership
The culmination of years of negotiation resulted in the India-EU trade deal. Prime Minister Narendra Modi recognized this achievement as the largest free
trade agreement in India's history. The pact is seen as a crucial step towards deepening the overall bilateral ties between the two entities. The agreement is not only about trade but also reflects a shared commitment to collaboration, with the aim of boosting both economies. This partnership aims to strengthen economic ties and generate substantial growth opportunities for India and the European Union alike.
Boosting Economic Growth
One of the key advantages of this trade agreement is the potential to create a market encompassing roughly 2 billion people. The agreement is predicted to give a significant boost to India's pharmaceutical and MedTech sectors, with an anticipated $572 billion boost. This trade deal includes slashing tariffs on European car imports from 110% to 40% initially, and eventually to just 10%. This decrease in tariffs for cars and other goods and services will enhance trade relations and drive economic development. The deal also aims to increase collaboration between the two regions, thereby encouraging mutual benefit.
Climate Policy Alignment
This trade agreement goes beyond just traditional trade. The agreement demonstrates a proactive approach that includes alignment of climate policy with commerce, highlighting a shared commitment to sustainability and environmental responsibility. This focus reflects the growing global emphasis on sustainable practices and collaborative efforts to address climate change. This integration of environmental objectives into economic policy marks a progressive step, making the partnership more forward-thinking and sustainable. By bringing climate policy into the framework, the deal shows a commitment to global issues.
