More time needed to set the seal on the FTA between India and EU

While attending the Technotex event organised by FICCI, the Union Minister for Commerce and Industry Piyush Goyal, said that due to prolonged negotiations, the FTA between India and the EU will take more time to get sealed. He said there will soon be some “good news”, but the pact with the EU may take longer.

“EU will take a longer time, because there are 27 countries which have to come on the same page,” said Piyush Goyal.

Back in October, a prestigious UK daily reported that the FTA may have come to an impasse at the final stages. At that time, it was being said that data localisation (to prevent foreign companies taking data out of India) and UK companies being allowed to bid for Indian government contracts are among the issues causing the possible deadlock. Hopes went up some time later when Indian origin minister Rishi Sunak was elected as the Prime Minister of UK. But the situation hasn’t improved much since then.

Also Read – Will Rishi Sunak as PM be a good news for the India-UK FTA?

Both India and EU wanted to set seal to the FTA by Diwali 2022, however, due to numerous challenges, the feat hasn’t been achieved. The said FTA may bargain a range of products and services in both the nations.

Last year, India signed FTAs with Australia and the UAE. Reports had suggested that the country is in talks with others including the EU, Israel and Canada. Goyal said the government is mulling to come out with a production linked incentive scheme for the finished goods sector.

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