europe india deal : europe product is more affordable in india
Good News For Indians : The long-running talks for a free trade agreement between India and the European Union (EU) have reached a crucial stage. If everything goes according to plan, the agreement could be finalised by the end of January, German Chancellor Friedrich Merz said on Monday. He is currently on his maiden visit to India.
His comments, after meeting Prime Minister Narendra Modi in Ahmedabad on Monday, have brought a new ray of hope for the Indian economy and business in general. During his visit to Ahmedabad, Merger clarified that if the talks are concluded by the end of January, the Presidents of the European Commission and the European Council could visit India to sign the agreement. There is great enthusiasm on both sides about this potential agreement.
According to German government sources, Prime Minister Modi and Chancellor Merkel had very fruitful discussions. This has increased the chances of signing an agreement in January itself. Meanwhile, Indian Commerce Minister Piyush Goyal, while attending a separate event in Gujarat, also clarified that the agreement is in the final stages. Indian goods will have easy access to the European market and technologies and products from Europe will be more affordable in India.
Chancellor Merkel said that the world is currently going through an unfortunate situation. This is directly affecting countries like India and Germany. Although she did not name any countries, her meaning was clear. The US pressure on India regarding its purchase of Russian oil and China’s restrictions on mineral exports are prime examples.
Last year, China’s export restrictions and the US-China trade war severely disrupted supply chains. German carmakers bore the brunt of the impact. In such an uncertain environment, this agreement between India and the European Union will not only strengthen both economies but will also be a major step towards reducing dependence on China and the US.
Germany wants India to work with it on security issues to reduce its dependence on Russia. For this, the two countries have signed memorandums of understanding (MoUs) on artificial intelligence (AI), health sector and key minerals. Prime Minister Modi said in a joint press conference that these agreements will give new impetus and strength to mutual cooperation.
