India EU trade deficit: European Commission President Ursula von der Leyen came to New Delhi with the proposal of maintaining the strengthen economic stability of the country by tied up the ‘trade deal’ between the countries. Indian Prime minister Narendra Modi finalizing a free trade agreement (FTA) by the end of this year, aiming to strengthen economic ties and address mutual trade concerns.
Why EU needs to partnership with India?
Garima Mohan said if FDA were to come into force it would be the largest deal of kind in the world according to reports the EU needs to react to not just increasing the tariff from U.S. but also reducing dependencies on China and for to do so EU needs to strengthen it’s economic partnership with India.
EU ignores India’s relationship with Russia
According to Garima Mohan India is set a positive role in the conflict between Russia and Ukraine. Senior of Indian National Security advisor and Ukrainian officials and Russia in the meeting where India seems to play a positive role, India is becoming closer to Europe than the U.S. since under the presidency of Donald Trump.
Mutual Benefit on India EU trade deficit
India can reduce EU’s dependencies on China in many different ways by providing sectorial needs like electrical vehicle batteries, renewable sources, this will be mutual benefit trade deal as India as well. Actually, growing up the market in technological sector by lowering its tariff.
One of the Speech of Prime Minister Modi, where he said that Europe has engaged for the very first time with any country and we have prepared a blueprint for collaboration technology in the areas of Trade technology investment, green growth, security, skilling and mobility.
Sandra Petersmann DW delhi Bureau Chief rephrase this with acknowledgement that India needs mobility for its skilled workers which EU can provide this by offering opportunities for the skilled workers.
Indo-Pacific Strategy
Both the countries sort out their own tariff issues by trading with each other with lower rate of tariff that build the reliance between EU and India. India can export more goods to the EU and European countries trade in the technology sector, Sandra especially mentioned AI technology progress for the future are their very concern where both parties can build together
Read also: Economic impact of Make in India
Trading benefit
EU is the largest trading partner of India and last year trade reach goes up to high approximately $180 billion with last two years. This is the benefactor in the most fiscal years by trading goods and services. India’s exports to the EU included $75.18 billion in goods and $31.13 billion in services, while the EU exported $63.44 billion in goods and $31.35 billion in services to India.
Tariff on both countries Goods and services
- EU wants to cut-off 100% tariff on imported cars, alcoholic beverages which results India agrees to reduce the tariff after consulting Industries and WTO.
- EU can build reliance on Data transferring this will access to use of digital services which India can provide to the country in return access of the digital marketing to the EU.
- IT professional of India can see the opportunity for temporary work access in IT sectors of EU.
- EU want lower tariff on agriculture goods of India, which are currently at 35% to 60% as this will cause the subsidies for local farmers. India demands the access of markets in the EU which are the great profit for India.
