India - EU Free trade agreement: Viability, prospects and challenges

Abstract

The European Union, with its increasing membership across Europe, is beginning to assert itself as a major economic powerhouse. As one of the fastest growing economies, India is also fast becoming a major player in international trade. The bilateral trade between the two partners has been increasing, touching €77 billioni, making EU-27 India's biggest trading partner. The huge potential of the Indian economy and the growing clout of the EU in world markets are sure to move the figure upwards. Hence, bilateral trade between the two partners holds an important place in policy decisions. Recognizing this need, Governments of both partners have taken steps to frame an FTA between the two, to liberalize trade and to utilize the full potential. This study attempts to identify the potential areas where the full potential of Indian export competitiveness could be harnessed by implementing the FTA.