Union Minister of Commerce and Industry Piyush Goyal stated that the India-European Union (EU) Free Trade Agreement (FTA) could create significant opportunities for farmers, fishermen, Micro, Small and Medium Enterprises (MSMEs), startups, women entrepreneurs, manufacturers, and the service sector in both India and Europe.
Speaking during high-level talks between India and Belgium in Mumbai—held in the presence of Belgian Prime Minister Bart De Wever and Maharashtra Chief Minister Devendra Fadnavis—Goyal stated that this agreement would impart fresh momentum to India-Europe trade and help both sides forge a strong economic partnership amidst global challenges.
Goyal stated that a consensus on the India-EU FTA has been reached after nearly 25 years of negotiations. According to him, this agreement will encompass a combined market of approximately 2 billion people and large-scale economic production. Belgium Prime Minister Bart De Wever stated that under this agreement, tariffs on more than 95% of Indian and European goods exports would either be eliminated or reduced.
Diamonds, Green Hydrogen and Semiconductors
The discussions also emphasized enhancing cooperation in sectors such as gems and jewellery, semiconductors, green hydrogen, agri-food processing, and advanced manufacturing. Goyal highlighted the potential for greater collaboration among the diamond hubs of Antwerp, Mumbai, and Surat in areas like technology, design, and certification.
He also stated that combining Belgium’s expertise in microelectronics with India’s large market and skilled workforce could help develop a robust semiconductor ecosystem spanning from chip design to manufacturing. The Minister described the Port of Antwerp-Bruges as a crucial logistics gateway for India-Europe trade and called for stronger cooperation in areas such as green hydrogen and green shipping.
India-Belgium Cooperation in Defence and Advanced Manufacturing.
Goyal also emphasized opportunities to further deepen cooperation between India and Belgium in the fields of defense and advanced manufacturing. He identified areas such as counter-drone systems, electronic warfare technology, and precision weapons as potential sectors for collaboration. He also highlighted opportunities for Indian defense companies to expand into Western markets.
Goyal stated that India’s economic and technological capabilities are growing rapidly and reiterated the country’s goal of becoming a $30 trillion economy by 2047. He invited companies from Belgium and Europe to explore investment opportunities in key sectors such as semiconductors, artificial intelligence, space, nuclear energy, critical minerals, and research and development.
Strengthening Skills and Workforce Mobility
According to Goyal, India’s young workforce and vast talent pool can complement Belgium’s strengths in technology, innovation, and capital, thereby creating opportunities to meet the demands of Indian and European markets as well as global supply chains. The Minister also advocated for greater workforce mobility between India and Europe, encompassing the mutual recognition of professional qualifications, joint skill-development programs, and dual-degree educational programs.
These discussions between India and Belgium are taking place at a time when India and the EU aim to enhance cooperation in the fields of trade, investment, and technology. The proposed FTA, along with collaboration in logistics, skills, advanced manufacturing, and emerging technologies, is expected to provide a comprehensive framework to strengthen the long-standing economic ties between India and Europe.
(PIB)
