Union Commerce and Industry Minister Piyush Goyal Thursday said the proposed free trade agreement (FTA) negotiations between India and the European Union (EU) need political directions to reach a commercially meaningful deal while understanding each other’s sensitivities.

The pact came up for discussion during an interaction between Commerce and Industry Minister Piyush Goyal and Ambassadors of the European Commission delegation.

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Talking about growing proximity and rising trade between India and the EU, the minister said that both sides are aiming for a balanced, ambitious, comprehensive and mutually beneficial FTA.

Minister Goyal said the Indian economy is expected to grow at 7-8 per cent annually to become the third largest economy in the world over the next few years. Thereafter, rapid and exponential growth would help India’s GDP to reach the milestone of USD 35 Trillion by 2047.

The Minister further underlined that any sustainability discussions must appreciate the principle of Common But Differentiated Responsibility(CBDR) and implementation of such measures should take into account differing paths of development.

Further, acknowledging the large and untapped economic potential, the European side underscored that both sides would gain tremendously by integrating the two economies and building resilience in their supply chains.

The interaction also accorded an opportunity to discuss progress in the India-EU Trade and Technology Council.

India is the only country, other than the United States, with which the EU has such a mechanism.

It is to be noted that EU is the largest trading partner of India for goods as its bilateral trade in goods with the EU was USD 137.41 billion in 2023-24.

In addition, the bilateral trade in services, in 2023, between India and the EU was estimated at USD 51.45 billion.

The trade agreement with the EU would help India in further expanding and diversifying its exports of goods and services while securing the value chains.

India is seeking to forge balanced agreements with major world economies to increase its market share in global trade.