Despite elevated tariffs imposed by the US, the Indian economy has showcased its resilience, earning accolades from bodies such as the IMF and World Bank. India's economy continues to ascend, spearheading the globe as one of the fastest-growing economies. As Donald Trump entangles himself in tariff-related posturing and bluffs, India remains engaged in strategic moves.
In recent developments, following multiple trade agreements from Oman to New Zealand, the impending Free Trade Agreement between India and the European Union is now a key focus. EU Chairman Ursula von der Leyen herself has gestured towards this agreement as potentially monumental, indicating her plans for a potential visit to India post-Davos.
‘A Quarter of Global GDP at Stake’
Speaking at the World Economic Forum in Davos, EU President Ursula von der Leyen signaled an advanced stage in the long-pending EU-India Free Trade Agreement discussions. Viewing this as a milestone, she expressed optimism about its capacity to reshape economic ties between two of the world's most significant markets.
Von der Leyen stated, 'Though much remains to be done, we stand on the verge of a historic trade agreement, deemed by many as the largest Trade Deal to date. This agreement will open a market for two billion people, representing a significant portion of the global GDP.' The move is also part of the EU's broader strategy to diversify trade relations and mitigate associated risks.
Source: aajtak
Access to a 27-Nation Market for India
This trade agreement with the European Union is vital for India, broadening its potential reach extensively. For Brussels, India emerges as a strategic ally to lessen its reliance on China and fortify relations with strategic partners. This deal will enhance India's access to the markets of the EU's 27 member countries, amplifying its export opportunities.
Talks from 2007 Reaching Conclusion
Commencing discussions in 2007, the India-EU Free Trade Agreement negotiations faced a ten-year hiatus. However, a renewed political vigor in 2022 revived talks, further advancing the India-EU Trade Deal across vital technology, digital governance, and supply chain fortification domains.
Trump Engages the World with Tariff Threats
Notably, US President Donald Trump has maintained a pattern similar to 2025, leveraging tariffs to leverage influence globally. His latest tariff assertions included a 25% tariff threat on countries trading with Iran, followed by a 10% tariff warning against eight European states impeding his Greenland acquisition plan, with anticipations to rise to 25% by June 1st.
The most recent threat involved a staggering 200% tariff on French wine and champagne, inciting chaos across global stock markets. This instigated observable crashes spanning from Japan to Korea.
