India and EU to Kick Off 11th Round of FTA Negotiations

India and the European Union (EU) are set to commence the 11th round of negotiations on the proposed Free Trade Agreement (FTA) starting Monday, with both parties aiming to swiftly conclude the first phase of the pact. The talks, taking place in New Delhi until May 16, represent a significant step towards a phased conclusion of the trade deal, amidst global trade uncertainties.

Strategic Approach to Negotiations

Adopting a two-phase negotiation strategy, India and the EU plan to first address areas of convergence before moving on to more complex issues. This approach mirrors India's strategy in trade deals with Australia and the United States, aiming for an 'early harvest' of agreements on core trade issues.

Key Discussion Points

The EU's demands include substantial duty cuts on automobiles and medical devices, alongside tax reductions on wines, spirits, and certain food products. A stronger intellectual property rights regime is also on the agenda. Success in these negotiations could significantly boost Indian exports in sectors like ready-made garments, pharmaceuticals, and electrical machinery within the EU market.

Historical Context and Future Prospects

After an eight-year hiatus, negotiations resumed in June 2022, with both sides committed to concluding the agreement by the end of 2025. The FTA talks encompass 23 broad areas, including trade in goods and services, investment, and intellectual property rights, highlighting the comprehensive nature of the discussions.