Republic Day 2024 promises more than festivities—it’s a pivotal moment for India-EU relations. Top EU officials, including Commission President Ursula von der Leyen and Council President Antonio Costa, will be chief guests during their January 25-28 stay in India.
Speculation is rife that their presence signals the green light for a long-awaited Free Trade Agreement (FTA). Von der Leyen, addressing the Davos forum, expressed keen interest amid US-led trade turbulence. ‘Immediately after Davos, I’m off to India. We’ve reached the concluding phase of a game-changing trade deal—hailed as the mother of all agreements—uniting markets for 2 billion people, about 25% of global GDP.’
She underscored the strategic edge: ‘It grants Europe first-mover status in a rapidly expanding continent and the economic titan of our times.’
The January 27 summit is poised to finalize talks, with a declaration document and subsequent European legislative nods. Parallel deals on security-defense ties and professional mobility for Indians are anticipated.
This mega-pact with the EU—India’s premier trade ally ($135 billion in FY24)—covers goods and services, targeting zero tariffs for key sectors like textiles, leather, apparel, gems & jewelry, and handicrafts.
Piyush Goyal, Commerce Minister, has championed it as transformative. Despite hurdles like CBAM, negotiations are wrapping up, as Goyal confirmed recently.
The FTA arrives at a critical juncture, offering India diversified export avenues, Europe reliable partnerships, and both resilience against global shocks. Expect formal announcements soon, heralding a new chapter in transcontinental commerce.