THE FUTURE OF INDIA-EU FTA

Introduction India and European Union have shared a close affinity and bilateral ties since times immemorial. Being one of the first countries to establish ties with the European Economic Community in 1962, India cherishes its vital partner and believes that the multifaceted relationship that India and EU share holds immense potential for global change.

- PRIYASHA CHOUDHARY

India and EU have much in common to unite them as well as provide a basis to construct a strong edifice of a long-term and mutually reinforcing economic relationship. The EU has emerged as a strong political and economic force in the international community which makes relations with the Union and its individual countries an important aspect of India’s Foreign Policy. (Ghosh, 2009) Trade and economic relations have been the cornerstone of India- EU relations. EU is one of the largest trade partners of India and a steady source of foreign direct investment. Both sides share a vision of an equitable, non-discriminatory and rule-based multilateral trading system and have been working towards it since the early 2000s.

Economic Relations

The Indian sub-continent has one of the largest and fastest growing economies and is an important player in global economic governance. It represents a sizeable and dynamic market, with an annual GDP growth rate of around 6% (before the pandemic) for the Union.