the India-European Union (EU) Free Trade Agreement (FTA) negotiations, a major milestone for Indian foreign policy and economic strategy.
India-EU Free Trade Agreement: The "Mother of All Deals"
After 19 years of negotiations (started in 2007), India and the EU have finalized a landmark FTA aimed at doubling bilateral trade and reducing strategic dependencies.
Key Pillars of the Agreement
* Tariff Liberalization: The EU will drop tariffs on 99.5% of Indian exports. Conversely, India has provided concessions on 97.5% of EU imports, notably reducing duties on luxury cars (from 110% to 10%) and wines/spirits.
* Services & Labor Mobility: India gains improved access for skilled professionals to work in the 27-nation bloc. India has reciprocated by opening 102 sub-sectors, including professional and telecommunication services.
* Exclusions & Sensitivities: To protect domestic interests, India has excluded sensitive sectors like dairy and agriculture (beef, sugar, wheat, etc.) from the deal.
* Geopolitical Significance: The pact is seen as a "stability" tool amidst global upheaval and U.S. tariff pressures, aligning two of the world's largest economies.
Critical Challenges Addressed
The deal navigated contentious issues like the Carbon Border Adjustment Mechanism (CBAM), with a "limited agreement" to help Indian businesses gain accreditation and ensure "most favored nation" treatment regarding future concessions.
Mind Map: India-EU FTA
* Economic Impact
* Boost to labor-intensive sectors (Textiles, Leather, Gems).
* Cheaper high-tech EU imports (Machinery, Pharma).
* Goal: Doubling Indian exports.
* Strategic Significance
* Diversification of supply chains.
* Countering global protectionism.
* Strengthening the India-EU Strategic Partnership.
* Key Concessions
* EU: 0% tax on machinery/pharma; Duty-free gems/spices.
* India: Lower duties on EU cars (quota-based); Professional services access.
* Major Exclusions
* India's Dairy sector.
* Sensitive agri-products (Rice, Wheat, Honey).
* EU's "Sustainable Development"