NEW DELHI: The Chamber of Trade and Industry (CTI) has welcomed and expressed happiness over the India-European Union Free Trade Agreement (FTA) between India and the European Union, calling it a timely and much-needed boost for Indian exporters.
CTI Chairman Brijesh Goyal said the proposed agreement with the European Union would significantly benefit key Indian sectors, including textile, leather, footwear, gems and jewellery, chemicals, marine products, dairy products and agricultural goods.
India and the European Union (EU) on Tuesday announced the India-EU FTA that they have hailed as the “mother of all deals”, India and the European Union trade deal to remove tariffs on more than 90% of goods traded between the two.
According to CTI, India’s exports to European Union countries could reach up to $50 billion as a result of trade agreements with EU nations.
“With increased access to the European Union’s 27 member countries, demand for Indian goods is expected to rise substantially. Indian companies will also get opportunities to aid up their industries in Europe, strengthening long-term trade and investment ties,” Goyal said.
CTI Senior Vice President Deepak Garg and Vice President Rahul Gandhi said that under the scope of FTA, there is a market of about 1.9 billion people on both sides and this agreement is a bigger trade agreement than the FTA of China and 10 ASEAN countries.
CTI Chairman highlighted vehicles imported from Europe to India currently face a tariff of 35.5%, while plastic attracts 10.4% duty and medicines 9.9%. With tariff reductions from the Indian side under the agreement, goods coming from European Union countries are expected to become cheaper, benefiting Indian consumers as well.
Goyal also underlined the damage caused by the 30% US tariff, saying it had severely affected Indian industries. The situation had created an employment crisis, putting the jobs of nearly 10 lakh people at risk across the country. Indian goods have become around 38% costlier in the US compared to products from other countries, leading American buyers to shift their preference away from India. According to Brijesh Goyal, Indian exports worth more than $48 billion were being impacted because of these tariff barriers CTI said the India-EU trade agreement could also help offset these losses by opening up alternative markets and restoring confidence among Indian exporters at a crucial time for the economy.
