 "India-EU, India-European Union")
The EU accounts for over 17 per cent of India’s total exports and about 8.8 per cent of the country’s total imports | Photo: ANi
Senior officials of India and the 27-nation European Union (EU) are expected to hold the next round of talks for the proposed free trade agreement, which aims at boosting commerce and investments, in September, an official said.
Joint Secretary in the Department of Commerce Darpan Jain said that the eighth round of talks was concluded on June 28.
He said that discussions were held on all 21 chapters in the meeting and progress was made in number of areas such as government procurement, digital trade, technical barriers to trade, goods, and market access.
“We plan to hold more inter-sessional meetings in July and August and we intend to have another round (of talks) in the last week of September,” Jain told reporters here.
On June 17, 2022, India and the EU formally resumed negotiations on the proposed agreement, after a gap of over eight years. They are negotiating Trade and Investment Agreement, and a pact on Geographical Indications (GI).
India had started negotiations for a trade pact with the EU in 2007, but the talks stalled in 2013 as both sides failed to reach an agreement on key issues, including customs duties on automobiles and spirits and the movement of professionals.
The trade agreement with the EU would help India further expand and diversify its exports of goods and services, including securing the value chains.
India’s merchandise exports to EU member countries have increased to $75.92 bn in 2023-24 from $74.83 bn in 2022-23. Imports also rose to $59.38 bn in 2023-24 from $61 bn in 2022-23.
The EU accounts for over 17 per cent of India’s total exports and about 8.8 per cent of the country’s total imports.
Talking about the proposed trade pact with the UK, another official said that with the new government taking charge in Britain, the two countries will take forward the negotiations.
The official said the new government in the UK will look into the agreement.
The India-UK talks for the proposed free trade agreement (FTA) began in January 2022. The 14th round of talks stalled as the two nations stepped into their general election cycles.
Britain’s newly-elected Prime Minister Keir Starmer spoke to Prime Minister Narendra Modi recently and said he stood ready to conclude an FTA that worked for both sides.
The two leaders agreed to work towards the early conclusion of a mutually beneficial India-UK FTA.
There are pending issues in both the goods and services sectors.
The Indian industry is demanding greater access for its skilled professionals from sectors like IT and healthcare in the UK market, besides market access for several goods at nil customs duty.
On the other hand, the UK is seeking a significant cut in import duties on goods such as scotch whiskey, electric vehicles, lamb meat, chocolates and certain confectionary items.
Britain is also looking for more opportunities for UK services in Indian markets in segments like telecommunications, legal and financial services (banking and insurance).
The two countries are also negotiating a bilateral investment treaty (BIT).
There are 26 chapters in the agreement, which include goods, services, investments and intellectual property rights.
The bilateral trade between India and the UK increased to $21.34 bn in 2023-24 from $20.36 bn in 2022-23.
The Labour Party’s election manifesto for the recent polls also committed to clinching the deal.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jul 15 2024 | 8:23 PM IST
