India-EU pact to be 'mother of all trade deals', no member state opposed: Goyal (LIKELY TO BE SIGNED JANUARY 26), Pg3

Key Highlights:

• The India-EU trade agreement, dubbed the "mother of all trade deals," is expected to be signed on January 26.
• Commerce Minister Piyush Goyal stated that all 27 EU member states support the agreement.
• The agreement aims to be comprehensive and mutually beneficial, addressing the interests of both India and the EU.
• India seeks market access in sectors like textiles, footwear, and gems, while the EU aims for access for its automobiles and beverages.

Detailed Insights:

• Negotiations for the India-EU FTA were relaunched in July 2022 after being abandoned in 2013, with initial talks starting in 2007.
• A "new chapter" is being developed to provide long-term regulatory certainty in India's manufacturing sector to attract FDI from the EU, potentially allowing 100% FDI in certain sectors.
• India is negotiating conditions such as local employment, local value addition, and the use of local raw materials for investments.
• Investments have been a key feature in trade deals, with EFTA countries committing to invest $100 billion in India over 15 years and New Zealand committing $20 billion in investments.
• The shared challenge of China's dominance in critical technologies and manufacturing has been a driver for the trade deal.
• The Look West trade policy focuses on agreements with developed countries where trade from both countries doesn't compete in similar sectors.

Key Concepts Involved:

• Free Trade Agreement (FTA): An agreement between two or more countries to reduce or eliminate trade barriers.
• Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
• Protectionism: The theory or practice of shielding a country's domestic industries from foreign competition by taxing imports.