New Delhi: India and the European Union announced the closure of the long-drawn negotiations on the free trade agreement on Tuesday.
European Commission president Ursula von der Leyen termed the deal as the 'mother of all deals'.
The pact, which is likely to be implemented next year, is beneficial for both sides, and will also help Tamil Nadu, as it relaxes conditions on exports from key labour-intensive sectors like textiles, leather, auto parts, etc.
India, the 4th largest economy, and the European Union, the 2nd largest economy, comprising 25 per cent of Global GDP, account for one third of global trade.
Over 99 per cent of Indian exports gain preferential entry into the EU, unlocking massive growth potential.
Open new opportunities for MSMEs and create jobs for women, artisans, youth and professionals.
USD 33 bn of exports in labour-intensive sectors like textiles, leather, marine products, gems and jewellery set to gain immensely from preferential access under the FTA.
To bring down tariffs up to 10 per cent on almost USD 33 bn of exports to zero duty on the first day of the implementation of the pact
On automobiles, a calibrated and carefully crafted quota-based liberalisation package
Will not only allow EU auto makers to introduce their models in India in higher price bands but also open possibilities for Make in India and exports from India in future.
Indian consumers to benefit from high-tech products and greater competition
The reciprocal market access in the EU will also open up opportunities for India-made automobiles
India has prudently safeguarded sensitive sectors, including dairy, cereals, poultry, soymeal, certain fruits and vegetables, balancing export growth with domestic priorities
FTA provides measures to tackle non-tariff barriers through strengthened regulatory cooperation, greater transparency, and streamlined customs, Sanitary and Phytosanitary (SPS) procedures, and Technical Barriers to Trade disciplines
Future-ready mobility framework expands global opportunities for skilled, semi-skilled Indian professionals
Through CBAM (carbon border adjustment mechanism) provisions, commitments have been secured, including a forward-looking most-favoured nation (MFN) assurance extending flexibilities
Certainty of market access, non-discriminatory treatment, focus on digitally delivered services, and ease of mobility will provide a boost to India's services exports
India to get access to the EU's 144 sub-sectors like IT/ITeS, Professional Services, and Education Services.
The EU will get access to 102 sub-sectors offered by India
It will bring in high-tech services and investment into India from the EU, resulting in a mutually beneficial arrangement.
FTA provides a facilitative and predictable framework for business mobility covering short-term, temporary and business travel in both directions
The EU and India are providing mobility commitments to each other for Intra-Corporate Transferees (ICT) and Business Visitors, along with entry and working rights for dependents and family members of ICTs.
The EU has also offered commitments in 37 sectors/sub-sectors for Contractual Service Suppliers (CSS) and 17 sectors/sub-sectors for Independent Professionals (IP).
India also secured a framework to constructively engage on Social Security Agreements over a five-year horizon.
India secures access for practitioners of Indian Traditional Medicine to work under home title in EU nations where traditional medical practices are not regulated.
FTA promotes cooperation to advance innovation and secure cross-border electronic payments
EU becomes India's 22nd FTA partner.