The EU and India are maximising efforts to finalise a free trade agreement, a top minister in Indian Prime Minister Narendra Modi’s cabinet said, as the South Asian nation tries to broaden its trade relations beyond the US after being hit by tariffs, reports Bloomberg.
“India and the European Union are working with sincerity and commitment to finalize a comprehensive and balanced free trade agreement,” Commerce Minister Piyush Goyal said at an industry event in New Delhi on Friday according to a statement.
The search for a “perfect deal” should not come in the way of finalizing the trade deal, he said reflecting urgency.
India is looking for alternative destinations to cushion the impact of a 50 per cent tariff slapped by President Donald Trump on exports of goods from the South Asian country. Bloomberg Economics estimates that if the new duties stick, they could slash US-bound exports by about 52 per cent and reduce the country’s gross domestic product by almost 1.0 per cent over the medium term.
The negotiations are “intense” and moving ahead with an “unprecedented momentum,” as both sides were trying to conclude the pact by the end of the year, the EU’s Commissioner for Trade and Economic Security Maros Sefcovic said at the same event. He is in India for the trade talks.
The two sides were putting together “an economically meaningful, win-win package” to help business and people in Europe and India, he said.