India-EU FTA will provide India's labour-intensive products easy access to European Union market: PM Modi

New Delhi [India], January 27 (ANI): Prime Minister Narendra Modi has said that the India-EU Free Trade Agreement finalized on Tuesday will provide easy access to the European Union market for India's labour-intensive products, including textiles, gems and jewellery, auto parts, and engineering goods.
Speaking at the India-EU Business Forum, PM Modi said the FTA with Europe is the largest such agreement in India's history.
"This visit to India by the Presidents of the European Union Council and Commission is no ordinary diplomatic visit. It heralds a new era in India-European Union relations," he said.
He said the achievements during the visit of European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen symbolise the unprecedented alignment taking place between the world's two largest democratic powers.
"Indian investment in the EU has reached almost 40 billion euros. Today, there is deep cooperation between India and European companies in every sector, including R&D, manufacturing, and services, and business leaders like you are both the drivers and beneficiaries of this. Now is the time to transform this partnership into a whole-of-society partnership," he said.
"With this vision, we have today finalised a comprehensive FTA. This will provide easy access to the European Union market for India's labour-intensive products. This includes textiles, gems and jewellery, auto parts, and engineering goods. Fruits, vegetables, processed foods, and marine products will see new opportunities. Our farmers and fishermen will directly benefit from this. Our service sector will also benefit. The IT, education, traditional medicine, and business services sectors will particularly benefit. Today, there is great upheaval in global business. Every company is re-evaluating its market strategy and partnerships. At such a time, this FTA is a clear and positive message for the business world. It is a clear invitation for the business communities of both sides to build a capable, reliable, and future-oriented partnership," he added.
PM Modi urged business community members of India and the EU to collectively reduce external dependencies in EVs, batteries, chips, and APIs.
"I am fully confident that you will all take full advantage of the opportunities presented in this FTA. It aligns with several priorities of both India and the European Union. Your business partnerships can also benefit from this. I will talk about three priorities in this context. First, today, trade, technology, and critical minerals are being weaponised globally. We need to work together to de-risk our dependencies. Can our business community collectively reduce external dependencies in EVs, batteries, chips, and APIs?" he asked.
"Can we build a shared alternative for reliable supply chains? Second, both India and the European Union have focused on the defence industry and frontier technologies. I urge you to enhance partnerships in sectors such as defence, space, telecom, and AI," he added.
PM Modi said a clean and sustainable future is a priority for both of the countries.
"We should increase joint research and investment in every sector, from green hydrogen to solar energy and smart grids. Both industries should also work together on small modular reactors and sustainable mobility. In addition, we should develop solutions together in areas such as water management, the circular economy, and sustainable agriculture," he said.
In his earlier statement during the Joint Press Statement with the President of the European Council and the President of the European Commission, PM Modi said that relations between India and the European Union have witnessed remarkable progress in recent years.
"Our partnership, based on shared democratic values, economic synergy, and strong people-to-people ties, is reaching new heights. Today, we have trade worth 180 billion euros. More than 800,000 Indians are living and actively contributing to the countries of the European Union," he said.
"We have established new dimensions of cooperation in every sector, from strategic technologies to clean energy, from digital governance to development partnerships. Building on these achievements, at today's summit, we have taken several decisions that will benefit all sections of society," he added. (ANI)