New Delhi, April 20 Commerce and Industry Minister Piyush Goyal’s five-day visit to London, Oslo, and Brussels for strengthening India’s trade and investment relations with the UK, Norway, and the European Union is expected to begin on April 28, according to a senior official.
The London leg of the visit is aimed at wrapping up the negotiations for the proposed free trade agreement between India and the UK, as talks have entered the last lap, the official said.
The visit to Oslo comes against the backdrop of India having signed a comprehensive free trade agreement with the four-nation European bloc EFTA in March last year. It is expected to be implemented this year. The European Free Trade Association (EFTA) comprises Iceland, Liechtenstein, Norway, and Switzerland.
The two sides signed the Trade and Economic Partnership Agreement (TEPA) in March, last year. India has received a commitment of a $100 billion investment over 15 years from the grouping, while allowing products such as Swiss watches, chocolates, and cut and polished diamonds from the region to come into the country at lower or zero duties as part of the agreement.
Negotiations have also picked up momentum for a trade agreement with the 27-nation European Union (EU). India and the EU are exploring the possibility of an early harvest agreement before finalising a comprehensive pact. The 11th round of negotiations between the two sides is scheduled from May 12–16 in New Delhi.
Goyal had said earlier this month that concrete steps are needed to remove existing trade barriers for speeding up the talks to sign a Free Trade Agreement (FTA) between India and the European Union.
The minister highlighted that both sides need a deeper understanding of the barriers holding back the agreement, as there is tremendous potential to grow from the current bilateral trade level of $15 billion.
He also emphasised the need for encouraging investments between India and Italy and enabling businesses to trade with each other without roadblocks.
Prime Minister Narendra Modi and President of the European Commission Ursula von der Leyen have agreed to expedite the conclusion of the India-EU free trade agreement (FTA) by the end of the year at a meeting held in Delhi last month.
The EU President’s visit came against the backdrop of massive tariff hikes proposed against all countries by US President Donald Trump under his ‘America First’ policy, which is threatening to disrupt global trade and heighten uncertainty in the global economy.
PM Modi and the European Commission President committed to task their respective negotiating teams to pursue negotiations for a balanced, ambitious, and mutually beneficial FTA. Officials were asked to work as trusted partners to enhance market access and remove trade barriers. They were also tasked to advance negotiations on an Agreement on Investment Protection and an Agreement on Geographical Indications.
Reaching a deal will be complex, however, with significant concessions wanted on both sides in areas ranging from cars and whisky to pharmaceuticals and textiles.
The EU wants India to lower tariffs on cars, wine, and whisky as well as some agricultural products. India, on the other hand, wants greater market access and lower tariffs for key exports, including pharmaceuticals, textiles, and apparel.
The EU is India’s largest trading partner, accounting for 124 billion euros of trade in goods in 2023, or 12.2 per cent of total Indian trade. Trade in services between the EU and India reached nearly 60 billion euros in 2023, almost double the level in 2020. A third of that were digital services, according to figures compiled by the World Economic Forum.
Trade between India and the EU has grown by around 90 per cent in the past decade, but talks over a free trade pact have stalled over the years due to sharp differences between India and the 27-nation bloc on agriculture, automobiles and pharmaceuticals.
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