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Jeet B Bhayani (SEBI RA)

20th Jan · SEBI-Registered Analyst

On January 27 in New Delhi, India and the European Union will make important announcements at the India-EU Summit, potentially marking a pivotal moment in their relationship. As per diplomatic sources, the summit is set to finalise the Free Trade Agreement (FTA) negotiations, which have been ongoing for quite a while and are regarded as one of the most significant trade agreements that India has made in recent times, along with strengthening a strategic defence partnership and a mobility arrangement for Indian professionals within the European Union. The highest leaders of the European Union, including European Council President Mr Antonio Costa and European Commission President MMsUrsula von der Leyen, will be the main guests at India’s 77th Republic Day festivities on January 26 before co-chairing the summit together. The inclusion of the EU’s military unit in the Republic Day parade marks the first instance of EU involvement in such an event outside Europe, highlighting the strengthening strategic bond between the two. Both parties will adopt a document to declare the conclusion of FTA negotiations, which will then undergo legal review and require ratification from the European Parliament and Council. The European Union is India’s largest trading partner, with goods trade reaching US$ 135 billion in FY24, and the FTA is anticipated to provide further market access and economic synergies. Despite progress in the negotiations, there remains a conversation regarding delicate topics like the EU's Carbon Border Adjustment Mechanism (CBAM). Alongside economic collaboration, the summit will focus on important geopolitical changes. These accords are anticipated to further strengthen India’s standing in global trade, security, and interpersonal connections with Europe

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