According to an official, India and the European Union (EU) concluded the first round of talks for a comprehensive free trade agreement on Friday, aiming to strengthen economic ties between the two sides. After an eight-year hiatus, India and the 27-nation bloc resumed negotiations on proposed trade, investment, and Geographical Indications agreements on June 17.
The first round of talks, which began on June 27, ended on July 1, according to the official. India began trade talks with the EU in 2007, but the talks stalled in 2013 after both sides failed to reach an agreement on key issues such as customs duties on automobiles and spirits, as well as professional mobility.
In 2021-22, India's merchandise exports to EU member countries were estimated to be around USD 65 billion, while imports totaled USD 51.4 billion.
A geographical indication (GI) is primarily an agricultural, natural, or manufactured product (handicrafts and industrial goods) that originates in a specific geographical territory. Typically, such a name conveys an assurance of quality and uniqueness, which is primarily attributable to its origin.
Last month, Piyush Goyal, Minister of Commerce and Industry, and Valdis Dombrovskis, Executive Vice President of the European Commission, launched negotiations in Brussels.
In 2021-22, India's bilateral trade with the EU was worth USD 116.36 billion. Despite global disruptions, bilateral trade increased by 43.5 percent year on year in 2021-22.
The EU is currently India's second-largest trading partner after the US, as well as the second-largest destination for Indian exports.
The trade agreement with the EU would assist India in expanding and diversifying its exports of goods and services, as well as securing value chains. Both parties want the trade talks to be broad-based, balanced, and comprehensive, with a focus on fairness and reciprocity.
