India Aims For EU Free Trade Agreement By December: Finance Minister Sitharaman

New Delhi, May 7 (KNN) India’s Finance Minister Nirmala Sitharaman expressed optimism that a free trade agreement (FTA) with the European Union could be achieved by December this year, noting that there were just ‘one or two items’ on which each side maintained firm positions.

Her comments came on the same day that India and the UK finalised their own free trade pact.

Speaking at the ‘ADB Governors Seminar: Cross Border Collaboration for Future Resilience’ in Milan, Italy, Sitharaman called for flexibility in the negotiations.

“Negotiation is about the art of making it possible. You need to have everything done to make it possible to achieve. But when there are fixed positions, someone will have to relax, bring in the elasticity,” she stated.

The Finance Minister emphasised that an EU agreement was a top priority for India due to traditional links between the regions.

“If negotiations go forward in that spirit, the December deadline is not impossible to achieve,” Sitharaman remarked, adding that the principle of free trade centres on efficiency and must adhere to acceptable free trade standards.

Sitharaman highlighted increasing global uncertainties, citing recent U.S. tariff announcements and diminishing influence of global institutions.

In this context, she noted that countries are increasingly pursuing bilateral arrangements, with both India and the EU feeling a new sense of urgency in their negotiations because “the market can be one big market.”

The Minister underscored the need for countries to secure investments and market access across various nations in the current global climate.

“Supply chains cannot be from one big market. Concentration risks have played out substantially,” she said, noting that while there was no reversing globalisation, economically prudent post-globalisation solutions had caused significant disruptions affecting ordinary citizens.

Sitharaman clarified that self-reliance is not an inward-looking policy but a progressive approach where countries utilise their own resources to meet demands.

Regarding India’s integration into global supply chains, she explained that India has adopted a long-term strategy that leverages its strategic strengths and capacities.

The Finance Minister highlighted India’s demographic advantage, noting that the country has 600 million people under 25 years of age.

Unlike nations facing aging population challenges, India benefits from a substantial productive-age workforce, which positions the country advantageously in global economic partnerships.

(KNN Bureau)

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