European Union President Ursula von der Leyen, who is in New Delhi, where she attended the Republic Day celebrations as the Chief Guest, has praised India-EU relations and asserted that " a successful India makes the world more stable”. The remarks came ahead of the much-awaited India-EU trade deal, which is often dubbed “mother of all deals”.
In a social media post on X, von der Leyen said, "It is the honor of a lifetime to be Chief Guest at the Republic Day celebrations. A successful India makes the world more stable, prosperous and secure. And we all benefit."
India-EU trade deal
New Delhi and Brussels are likely to announce the conclusion of negotiations on the much-awaited free trade agreement at the India-EU summit on January 27.
Leaders from both sides are expected to adopt a joint EU-India comprehensive strategic agenda to reinforce the strategic partnership and deepen cooperation, which delivers stability and prosperity at home and beyond.
India and the European Union are set to announce on January 27 the conclusion of negotiations and the finalisation of a free trade agreement aimed at boosting economic ties between the two regions amid disruptions in global trade due to US tariffs, an official said. The pact is nearing the finishing line after 18 years of negotiations. The talks started in 2007.
How India-EU pact will help both sides
The pact is likely to provide duty free access to a number of Indian goods from labour intensive sectors such as textiles, chemicals, gems and jewellery, electrical machinery, leather and footwear.
The EU's tariffs on Indian goods are about 3.8 per cent, but labour-intensive sectors attract about 10 per cent import duty. India's weighted average duty on EU goods is about 9.3 per cent, with particularly high duties on automobiles, parts (35.5 per cent), plastics (10.4 per cent), and chemicals and pharmaceuticals (9.9 per cent).
ALSO READ: India-EU Trade Deal Nears Conclusion: Why It Matters, What Each Side Gains And The Road Ahead
Quota-based duty concessions on cars
Both sides are likely to consider extending quota-based duty concessions on cars. Like for Australia and the UK, India may provide a tariff rate quota on European wines under the agreement. India imposes a duty of 100-125 per cent on alcoholic beverages.
Sensitive agriculture issues have been kept out of the deal. The EU has been protective of its beef, sugar and rice markets. India, on the other hand, has protected its farm and dairy sectors from competition, as the livelihoods of large numbers of small and marginal farmers depend on them.
In an FTA, two sides reduce or eliminate import duties on over 90 per cent of goods traded between them. An FTA also liberalises norms to promote trade in services sectors such as telecommunications, transportation, accounting, and auditing. The NDA government has finalised seven trade pacts since 2014: Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc, and Mauritius.
(With inputs from agency)