New Delhi: The European Commission on Friday put forward its proposals to the Council for the signature and conclusion of the Free Trade Agreement (FTA) between the European Union and India, and, if authorised by it, this will be the largest trade agreement ever concluded by both the EU and India, according to an EU statement. 

"Once adopted and entered into force, the agreement will improve market access, reduce tariffs, tackle unnecessary barriers to trade, as well as provide predictable rules for trade and investment between the EU and India," the European Commission statement said.

It highlighted that the EU and India already trade over 180 billion euros worth of goods and services per year, supporting close to 800,000 EU jobs. This deal will eliminate or reduce tariffs on 96 per cent of EU goods exports to India. Overall, the tariff reductions will save around 4 billion euros per year in duties on European products. It will make it easier for European companies to access the Indian market and compete on a more level playing field, while it will ensure consumers can benefit from increased choices and more competitive prices.

The proposal put forward today represents a key step towards ensuring that consumers and businesses can start reaping the benefits of this deal as soon as possible. This is in line with the fast-track procedure laid out by Commissioner for Trade and Economic Security, Maros Sefcovic, said, earlier this year. The procedure aims at speeding up the implementation of FTAs, which is crucial at a time of geopolitical uncertainty and growing pressure on the global trading system, the statement said.

The EU-India FTA reflects the EU's commitment to strengthen economic ties with key partners in the Indo-Pacific region. With its proposals, the Commission is seeking the Council's approval to sign the agreements, which will then require the European Parliament's consent before conclusion and entry into force. The Indian authorities are in parallel going through their own internal ratification procedures, the statement added.

"Our focus has been clear from the start: to ensure that businesses and citizens feel the tangible benefits of this landmark FTA as quickly as possible. Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time. This agreement brings together two of the world’s largest economies — a market of 2 billion people and around a quarter of global GDP. It will very soon start creating new opportunities for both trade and investment," Sefcovic said.