Get All Access for $5/mo

FTA With EU May Take Longer To Conclude, Says Piyush Goyal As per reports, currently EU is India's third largest trading partner, accounting for $88 billion worth of trade in goods in 2021, whereas India is the EU's 10th largest trading partner accounting for 2.1% of EU total trade in goods in 2021

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Piyush Goyal Twitter handle

Union commerce minister Piyush Goyal has said that a free trade agreement with the European Union (EU) will take longer as negotiations with 27-country bloc will be prolonged, and active negotiations for the free trade agreements (FTA) are ongoing with two-three countries and the EU, according to a PTI report. The minister was speaking at the Technotex event organized by the industry lobby Ficci.

India and EU had launched talks for having a wide-ranging FTA, officially called broad-based BTIA, long ago in 2007. As per reports, India's bilateral trade with the European Union amounted to over $116 billion in 2021-22.

"There will soon be some 'good news', the pact with the EU may take longer. The EU will take a longer time, because there are 27 countries which have to come on the same page," the minister said in a statement.

India's ministry of commerce and industry data in June 2022 had reportedly revealed that the US has become India's largest trading partner, surpassing China with bilateral trade reaching $119.42 billion. India is already an important trade and investment partner for the EU and could hold significant further potential. As per reports, currently EU is India's third largest trading partner, accounting for $88 billion worth of trade in goods in 2021 or 10.8% of total Indian trade, after the USA (11.6%) and China (11.4%), whereas, India is the EU's 10th largest trading partner, accounting for 2.1% of EU total trade in goods in 2021. Also, the EU is the second-largest destination for Indian exports (14.9% of the total) after the USA (18.1%), while China only ranks fourth (5.8%).

Last year, India signed FTAs with Australia and the United Arab Emirates. Reports had suggested that the country is in talks with other countries including the United Kingdom, Israel and Canada.

Piyush Goyal said the government is mulling to come out with a production linked incentive scheme for the finished goods sector, but did not elaborate on the same, as per the report.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
News and Trends

East Ocyon Bio, Culture Circle, Power Gummies, and Navanc Raise Early-Stage Funding

The startups listed below have disclosed investment rounds.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

India's Logistics Cost to be Reduced to 9% Within 2 Years: Nitin Gadkari

With a focus on innovation, clean energy, infrastructure, and rural empowerment, Nitin Gadkari's vision aligns with India's aspirations to become a global economic powerhouse.

News and Trends

Haber Secures USD 44 Mn in Series C Round to Drive Global Expansion

Accel remains the largest external stakeholder with an 18.1% stake, followed by Creaegis and Elevation.

News and Trends

4 Things to Know About Sanjay Malhotra, the 26th Governor of RBI

With extensive experience in various Indian government departments, Malhotra is well-versed in finance and taxation at both state and central levels