India, EU Set for Next FTA Negotiation Round

Speedy Summary

• India and the european Union (EU) are set to begin the tenth round of negotiations for a free trade agreement (FTA) in Brussels.
• Talks focus on resolving issues to finalize the agreement by year-end.
• Key concerns include agricultural tariffs, auto import duties, sustainability, and labor standards.
• India is negotiating investment protection and geographical Indications with the EU.
• Europe seeks lower Indian tariffs on dairy, wine, and automobiles; India resists due to domestic industry protection.
• Services trade remains contentious, with India seeking easier professional mobility under GDPR recognition.
• Bilateral trade between India and EU exceeded USD 190 billion in FY 2024.

Indian Opinion Analysis

The proposed FTA between India and the EU holds significant potential for enhancing economic ties. Resolving issues like tariff disparities on agriculture and autos along with regulatory barriers is crucial. There might potentially be complex implications for local industries such as automotive manufacturing if import duties are reduced too much.Conversely,lowering textile tariffs coudl boost India’s competitiveness against nations like Bangladesh. Successfully concluding these negotiations could substantially increase bilateral trade volumes while fostering mutual benefits across diverse sectors.

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