India and the EU signed a gigantic trade agreement

Prime Minister of India Narendra Modi told the media today that India and the European Union have finally concluded a free trade agreement aimed at deepening relations between the two sides and expanding trade activities.

The deal called the “mother of all deals” was reached after nearly two decades of negotiations.

The agreement was published in the Indian capital, New Delhi, where the EU-India summit is currently taking place.

“We have created a free trade area of ​​two billion people, from which both sides benefit economically. We have sent a signal to the world that rules-based cooperation continues to produce good results. And best of all, this is just the beginning,” said the President of the European Commission Ursula von der Leyen in the bulletin.

The agreement covers a wide range of trade in goods and services, lowers or eliminates customs tariffs, and at the same time strengthens economic growth.

It is hoped that it will create a significant competitive advantage, especially for the EU’s industrial and agricultural sectors, and give European companies easier access to the world’s most populous country.

Europe now needs new partners

US tariffs and protectionist measures in recent years have shown that heavy dependence on a single economic partner can create economic uncertainty.

It is hoped that the agreement will reduce the dependence of the parties on one market such as China or the United States.

India’s middle class is growing rapidly, increasing demand and creating opportunities.

For India, the agreement means the expansion of export opportunities to Europe and the clearest rules. The country wants to modernize its economy, increase employment and competitiveness and at the same time become stronger against China.

There are enough challenges. The practical applications of the agreement are still open. India has practiced trade protectionism with tariffs, so it remains to be seen whether it will be able to remove the barriers completely.

Bureaucratic challenges can slow down the implementation of the agreement. In addition, India’s customs system and regulation remain complex.

Cultural and business practices are very diverse in India, as the country consists of 28 states and eight union territories.

The Indian market is very localized and competitive, and EU companies have to adapt to its environment and negotiation culture.

There are currently only about a hundred Finnish companies operating in India.