Youth Destination Logo Final

India-European Union Free Trade Agreement

Share with Your Friends

India-European Union Free Trade Agreement

India and the European Union (EU) have resumed talks on the India-EU Free Trade Agreement (FTA) after a gap of 9 years.

  • In addition to the Free Trade Agreement, negotiations have begun on the following agreements: a separate Investment Protection Agreement (IPA), and a Geographical Indication (GI) agreement.
  • The European Union is India’s second largest trading partner. India’s bilateral trade with it reached an all-time high of US$ 36 billion in 2021-22. India has a trade surplus with the European Union, i.e., the balance of payments is in favour of India.
  • Given the above conditions, it is one of the most important free trade agreements for India. India’s major exports to the European Union include: Mineral fuels, Mechanical equipment, Electrical and electronic machinery, Automobiles and auto equipment, Pharmaceuticals, Precious Stone etc.
  • India started negotiations for a free trade agreement with the European Union in But the talks stalled in 2013. This was because the two sides had failed to reach an agreement on key issues such as tariffs on automobiles and spirits, agriculture and dairy, and movement of professionals.

Importance of Free Trade Agreement between India-EU

  • This will help Indian exporters to gain a competitive advantage in the EU markets. This will help domestic manufacturers gain access to cheaper EU imports.
  • The European Union is considered to be the main source of technology transfer and development to India. The Free Trade Agreement will give a boost to the Make in India and Self-reliant India initiative.
  • The EU is also looking for a bigger market, as trade within the EU has stabilized. In addition, its trade with the United Kingdom is also declining.

Free Trade Agreement (FTA)

  • There is an ambitious trade agreement between the countries. It provides preferential facility to the other party on the basis of negative list.
  • Investment Protection Agreement (IPA) is a mutual agreement. Here the signatory parties undertake to promote and protect private investment made by citizens in each other’s territories. The Geographical Indication (GI) Agreement establishes a transparent and predictable regulatory environment to facilitate trading of GI products.

Source – The Hindu

Download Our App

MORE CURRENT AFFAIRS

Click to Join Our Current Affairs WhatsApp Group

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilation & Daily Mains Answer Writing Test & Current Affairs MCQ

In Our Current Affairs WhatsApp Group you will get daily Mains Answer Writing Question PDF and Word File, Daily Current Affairs PDF and So Much More in Free So Join Now

Register For Latest Notification

Register Yourself For Latest Current Affairs

September 2022
M T W T F S S
« Aug    
 1234
567891011
12131415161718
19202122232425
2627282930  

Mains Answer Writing Practice

Recent Current Affairs (English)

Current Affairs (हिन्दी)

Subscribe Our Youtube Channel

Register now

Get Free Counselling Session with mentor

Download App

Get Youth Pathshala App For Free

Open chat
1
Youth Destination IAS . PCS
To get access
- NCERT Classes
- Current Affairs Magazine
- IAS Booklet
- Complete syllabus analysis
- Demo classes
https://online.youthdestination.in/