Prime Minister Narendra Modi on Thursday hailed the newly formed Free Trade Agreement (FTA) between India and the European Union, saying it is a big opportunity for Indian traders, manufacturers, and the country's youth.
Speaking to the media at Parliament, the Prime Minister said that Indian traders need to focus on quality as markets open up with the new trade agreement. “This is an opportunity. And the 1st mantra of this opportunity is that we focus on quality. Our traders should take the best quality products into the market, now that it is open to us,” he said.
‘Free trade for an ambitious India’
Referring to the new trade agreement and the overall economic vision of the country, PM Modi said that the new trade agreement is in line with the aspirations of the youth of the country and the need for self-reliance. “This is free trade for an ambitious India, for aspirational youth, and for a self-reliant India. I am confident that Indian manufacturers, in particular, will use this opportunity to enhance their capabilities”, he said.
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He described the FTA as a step towards building a more confident, competitive and productive India, particularly at a time when global trade dynamics are undergoing rapid change.
Deal announced during top EU leaders’ visit
The Prime Minister’s comments come days after the new trade agreement was announced between India and the EU during the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa to India.
The new trade agreement has been referred to as one of the most significant trade agreements that the EU has signed with any country.
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Tariff cuts and cheaper imports
According to the EU, this agreement will help increase European exports to India, and forecasts even predict that the exports may double in the coming years. In return, India has agreed to reduce or eliminate tariffs on a wide range of products, including wine and cars, chemicals, precious stones, plastics, and medicines.
As a result of this agreement, many European products may become cheaper for Indian consumers. The EU believes that this agreement will help reduce duties by as much as €4 billion a year, which is a major achievement in the trade relationship between India and the EU.
