The European Commission on Friday put forward proposals to the European Council for the signature and conclusion of the Free Trade Agreement (FTA) between the European Union and India. According to an EU statement, the agreement, if authorised and subsequently concluded, would be the largest trade agreement ever reached by the EU and India, marking a significant step in their economic relationship.

The proposed FTA is aimed at improving market access, reducing tariffs and addressing unnecessary barriers to trade while establishing more predictable rules for trade and investment. The European Commission said the agreement would help create better conditions for businesses operating across the two markets and could also benefit consumers through greater choice and more competitive prices.

The EU and India currently trade more than 180 billion euros worth of goods and services annually, supporting close to 800,000 jobs in the European Union, according to the statement. Under the proposed agreement, tariffs would be eliminated or reduced on 96 per cent of EU goods exports to India. The European Commission estimates that the tariff changes could save European exporters around 4 billion euros a year in duties.

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The Commission said the proposal represents a key step towards enabling businesses and consumers to benefit from the agreement as quickly as possible. It is part of a fast-track procedure outlined earlier this year by European Commissioner for Trade and Economic Security Maros Sefcovic, aimed at speeding up the implementation of free trade agreements at a time of geopolitical uncertainty and increasing pressure on the global trading system.

The EU said the agreement also reflects its broader effort to strengthen economic ties with important partners in the Indo-Pacific region. The Commission is now seeking approval from the European Council to proceed with the signing. After that, the agreement will require the consent of the European Parliament before it can be formally concluded and enter into force.

Sefcovic said the agreement brings together two of the world's largest economies, representing a market of around 2 billion people and approximately a quarter of global GDP. He said the EU was moving ahead with the necessary procedures in record time, with the objective of creating new opportunities for trade and investment. Indian authorities, meanwhile, are proceeding with their own internal ratification procedures.

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