India and the European Union (EU) inked a free trade agreement (FTA) today in New Delhi. It marked a historic achievement. Antonio Costa, Ursula von der Leyen, President of the European Commission, and Indian Prime Minister Narendra Modi signed the India-EU Trade Agreement. In a single year, this free trade agreement between India and the EU is anticipated to remove $2 billion in tariffs for both parties. After over two decades of sporadic conversations, the world’s second and fourth largest economies have also decided to strengthen their security alliance.
India’s export-oriented business in the textile, gems and jewellery, automotive, pharmaceutical, IT, and defence sectors is anticipated to gain the most from this India-EU free trade agreement, according to stock market experts. Forty stocks from these beneficiary firms were listed for purchase today.
Important developments on the India-EU Trade Agreement
The Important developments to be aware of:
PM Modi believes agreement will help manufacturing: Following his confirmation of the trade agreement between India and the EU, PM Modi stated that the action significantly enhance manufacturing and the services sector. Additionally, he stated that the agreement amounted to “25% of the global GDP and 1/3rd of global trade.”
What the head of the European Commission said on R-Day: Ursula von der Leyen, President of the European Commission and one of the main attendees of the grand Republic Day Parade in Delhi on January 26, posted a video of the event on X. She wrote, “A successful India makes the world more stable, prosperous, and secure. And everyone gains from it.
When will the agreement go into effect? The commerce secretary recently stated that although India and the EU have completed negotiations and signed the agreement. The trade accord will go into force sometime next year. “Formal signing will be completed after the legal scrubbing of the text. It will take five to six months.” Agrawal said.
Trump aide’s response to trade agreement: Trade talks between India and the US are still ongoing. However, the trade agreement between India and the EU was concluded. In a Sunday news interview, US Treasury Secretary Scott Bessent expressed his outrage over the development. He claimed that by buying refined Russian Oil products from India, European nations are funding a war “against themselves.”
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