New Delhi: India, which has not signed any trade agreement since 2012, will soon revive talks on the possible free trade agreement (FTA) with the European Union and the US. Even as the Narendra Modi government opted out of the Regional Comprehensive Economic Partnership (RCEP), it is keen on inking trade deals with other economic blocs, a highly placed source said, adding that India could gain significantly amid a growing anti-China sentiment in many parts of the world.
The EU is India’s largest trading partner accounting for 11.1 per cent of total Indian trade, on par with the US and ahead of China (10.7 per cent).
“We are positive that FTAs with the EU and US will benefit India and talks will be resumed,” Gopal Krishna Agarwal, the Bharatiya Janata Party’s national spokesperson on economic affairs, said. “India is not opposed to trade agreements with other countries, though now that seems to be the popular notion after we exited the RCEP, we understand the need to remain globally and regionally integrated,” Agarwal added.
After intense negotiations for an FTA with the EU, talks have been stalled since 2013 after differences on various issues could not be ironed out.
Other Asian nations looking at trade deals with the west, Vietnam has already inked one
Vietnam, which is emerging as a formidable competition to many economies, has already signed at a trade pact with the EU.
“The European economy needs now every opportunity to restore its strength after the crisis triggered by the coronavirus,” Ursula von der Leyen, President of the European Commission, said in a statement.
