European Commissioner for Budget and Administration, Johannes Hahn expressed the importance of a free trade agreement (FTA) between India and the European Union as being in the mutual interest of both sides. He emphasized the strong trade relations between the two entities, with the EU being India’s strongest trade partner. The negotiations for an India-EU FTA were formally re-launched in June 2022 and are reportedly in an advanced stage. The next round of negotiations is scheduled for September in New Delhi.
Hahn highlighted the potential benefits of the FTA, stating that there is always room for improvement in trade between India and the EU, especially since they are now the biggest trade partners. He also mentioned the opportunity for Indian investors to raise money from the Indian capital market to support the European economy through Euro Bonds. These bonds are AAA-rated and offer attractive yields, contributing to the reinforcement of the European single market, which is important for Indian companies.
The European Commissioner emphasized the importance of India and the EU leading the world order as strong economic powers. He stated that by cooperating more closely, both entities can influence global discussions and have leverage in shaping the global situation. Hahn believes that Europe and India are best suited to reconcile discussions between the West and the South, emphasizing their shared belief in the multipolarity of the world.
In conclusion, Hahn’s support for the India-EU FTA stems from the belief that it will benefit both parties by strengthening their trade relations and providing opportunities for investment. He sees the FTA as a way to not only boost the European economy but also to enhance cooperation between India and the EU on a global scale. With negotiations progressing and the next round planned for September, the path towards a comprehensive free trade agreement between India and the European Union appears promising.
