India-EU trade deal: PM Modi likely to visit Brussels in December for historic agreement signing
India’s trade relationship with the European Union could enter a significant new phase in December, with Prime Minister Narendra Modi expected to travel to Brussels to formally sign the proposed free trade agreement.
European Council President Antonio Costa announced the planned visit on Thursday. The signing is expected to take place shortly before a gathering of European leaders scheduled to begin in Brussels on December 17.
The announcement marks an important development following the conclusion of negotiations between India and the European Union earlier this year.
The proposed trade agreement is expected to create a major economic partnership covering more than two billion people and representing approximately one-fourth of the global economy.
A key objective of the agreement is to reduce tariffs, remove trade barriers and make it easier for businesses in both markets to access new opportunities.
India is expected to receive preferential or duty-free access to the European market for more than 99% of its exports by value. This could provide a significant boost to industries such as textiles, leather, gems and jewellery.
European businesses are also expected to benefit from lower import duties and improved access to the Indian market across several product categories.
However, certain sensitive industries will receive special consideration. Tariff reductions involving automobiles and auto components are expected to be introduced gradually.
India has also sought safeguards for important domestic sectors, particularly agriculture and dairy, to ensure that the agreement does not adversely affect local producers.
If formally signed and implemented, the agreement could strengthen investment, expand export opportunities and deepen economic cooperation between India and European nations.