‘Concrete steps’ needed to remove existing trade barriers with EU: Piyush Goyal

‘Concrete steps’ are needed to remove existing trade barriers for speeding up the talks and reaching a free trade agreement (FTA) between India and the European Union (EU), said Union Commerce Minister Piyush Goyal on Friday.

He highlighted that both sides need a deeper understanding of the barriers holding back the agreement, as there is tremendous potential to grow from the current bilateral trade level of USD 15 billion.

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Speaking at the Italy-India Business, Science and Technology Forum, the minister said, “I believe concrete steps need to be taken to expedite the conclusion of the FTA between India and the EU.”

“That will require both the EU, its member-states, and India to work in a spirit of cooperation to develop a mutual trust and deeper understanding of the trade barriers which are holding back the trade agreement between us,” Minister Goyal said.

He highlighted that the over-concentration of manufacturing and the reliability of supply chains have today become overriding concerns. “Industry and governments are struggling to keep pace with the impact of rapid digitalisation and technological shifts, accentuated by trade barriers and export controls.”

Minister Goyal further went on to note that India’s trade with the Mediterranean is about USD 75 billion annually, and the diaspora approximately 460,000. “We have promoted investments in critical sectors, including infrastructure, energy, and technology.”

“The strategic location of the Mediterranean, with approximately 600 ports and services 25 per cent of global seaborne trade, establishes it as a crucial hub,” he highlighted.

Goyal further stated that the Indian economy is slated to grow from USD 4 trillion to USD 30-35 trillion by 2047. ”Our goal of Viksit Bharat makes India a compelling case to deepen the engagement between the European Union and India, particularly Italy and India,” he said.

Further, the Deputy Prime Minister and Minister of Foreign Affairs & International Cooperation of Italy, Antonio Tajani, emphasised that India is an important country for stability in the Indo-Pacific region. Stability is crucial to strengthen the trade.

“Today, Italy and India are closer than ever. Our bilateral trade is over USD 14 billion, and we want to invest more in India, export more to India, and attract more Indian investments in Italy,” he added.

It may be noted that India-Italy trade is estimated at USD 15 billion in 2023-2024, while Foreign Direct Investments from Italy into India reached around USD 4 billion since the year 2000.