
Penny Matters
February 28, 2025 at 03:27 PM
"A free trade agreement between the EU and India would be the largest deal of this kind anywhere in the world," says President of the European Commission, Ursula von der Leyen.
That's an interesting statement from Ursula von der Leyen! A free trade agreement (FTA) between the European Union and India would indeed be a massive deal, given the scale of both economies. The EU is a bloc of 27 countries with a combined GDP of around $18 trillion, while India’s economy is pushing towards $4 trillion and growing fast. Together, they’d represent over 1.8 billion people—roughly a quarter of the world’s population. No existing FTA comes close to that scope in terms of market size and diversity.
The potential upside is huge: the EU could tap into India’s booming consumer base and tech talent, while India could gain better access to European markets for its goods and services—like textiles, pharmaceuticals, and IT. But it’s not a slam dunk. Negotiations have been on-and-off since 2007, bogged down by issues like tariffs, labor standards, and India’s protectionist streak. The EU’s push for climate clauses and intellectual property rules might also clash with India’s priorities.
What’s your take on this? Are you optimistic about it happening anytime soon?
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