India and the European Union have agreed to grant each other “Most Favoured Nation” (MFN) status for a period of five years from the date their proposed Free Trade Agreement (FTA) comes into effect, according to the draft text of the pact released on Friday (February 27).
The move marks a significant step forward in strengthening trade and economic ties between New Delhi and Brussels, following years of intermittent negotiations.
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Trade Talks Revived After Nearly a Decade
Negotiations between India and the EU were originally launched in 2007 but were put on hold in 2013 due to differences over market access, tariffs, and regulatory standards. The long-stalled discussions were eventually revived in June 2022, signaling renewed political and economic commitment on both sides.
The proposed agreement aims to deepen bilateral trade by reducing barriers and ensuring more predictable market conditions for businesses across sectors.
High-Level Engagements Pave the Way
The announcement of the draft trade deal followed high-level meetings in New Delhi between Prime Minister Narendra Modi and senior European leaders, including European Commission President Ursula von der Leyen and European Council President Antonio Costa.
The five-year MFN arrangement is expected to provide stability and assurance to exporters and investors on both sides, reinforcing efforts to boost trade volumes and enhance strategic cooperation between India and the EU.
The development underscores a renewed push to finalise one of India’s most ambitious trade agreements, potentially reshaping economic engagement between the world’s largest democracy and one of its biggest trading partners.
(This story is published from a syndicated feed)
