New Delhi: Commerce and Industry Minister Piyush Goyal on Friday said the free trade agreement between India and the 27-nation bloc EU, the negotiations for which are at the last leg, will be the “mother of all deals”.
The conclusion of talks for the agreement is likely to be announced on January 27.
The President of the European Council, Antonio Luis Santos da Costa, and the President of the European Commission, Ursula von der Leyen, will be on a state visit to India from January 25-27. They are chief guests at the 77th Republic Day celebrations.
“This (India-EU trade pact) will be the mother of all deals,” Goyal told reporters here, adding that the proposed agreement will be good and mutually beneficial for both sides.
It will also be a “super deal” for Indian export sectors, he added.
The NDA government has finalised seven trade pacts since 2014: Australia, the UK, Oman, New Zealand, the UAE, the EFTA bloc, and Mauritius.
He also said that the bilateral trade between the two sides is reasonably balanced in goods and services.
It will open huge opportunities for growth, Goyal said, adding that India and the European Union (EU) complement each other and are not in competition.
This agreement will be the biggest pact for India as it includes 27 developed nations, including France, Germany, Spain, Italy, Austria, Belgium, Bulgaria, Finland, Hungary, Ireland, the Netherlands, Portugal, Poland, Denmark, and Sweden.
Commerce Secretary Rajesh Agrawal on Thursday said India and the EU are “very close” to concluding negotiations on the proposed agreement. Discussions are underway to resolve remaining issues so that the deal is ready for announcement during the visit of top EU leadership later this month.
This pact will also be important, as the US’ imposition of high tariffs has disrupted global trade flows. India is facing steep 50 per cent tariffs. The FTA is expected to help Indian exporters diversify their shipments. It will also help reduce dependence on China.
The EU market accounts for about 17 per cent of India’s total exports, and the bloc’s exports to India constitute 9 per cent of its total overseas shipments.
India’s bilateral trade in goods with the EU was USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion and imports worth USD 60.68 billion), making the EU India’s largest goods trading partner.
As per reports, the EU, with a GDP of about USD 20 trillion and a population of over 450 million, is a major global trade player, exporting about USD 2.9 trillion and importing more than USD 2.6 trillion annually.
India, with a population of 1.4 billion, exported USD 437 billion in goods and USD 387.5 billion in services. It imported goods worth USD 720 billion and services worth USD 195 billion in 2024-25.
