European Union’s Ambassador to India, Herve Delphin, said on Saturday that India and the EU should use the free trade agreement (FTA) to increase bilateral trade and investment at a time when “some countries” are raising tariffs or otherwise closing their markets, in an oblique reference to the US.

Addressing the second annual general meeting of the Federation of European Business in India (FEBI) here, the Ambassador said, “The FTA can open new opportunities for EU and Indian businesses and create conditions to significantly increase our bilateral trade and investment. While some countries are raising tariffs or otherwise closing their markets, we should use the FTA to diversify trade, hedge against uncertainties and strengthen our supply chains.”

He highlighted that EU President Ursula von der Leyen and PM Modi set the objective to conclude the FTA by the end of this year. The negotiating teams are working hard to deliver it but it’s fair to say the negotiations are challenging and important issues remain to be solved, he added.

“The EU was and is still ready to conclude on a meaningful package. We look forward to the next round and further negotiations towards a mutually beneficial deal,” Delphin said.

He further stated that alongside the FTA, the EU and India are negotiating an Investment Protection Agreement. The agreement aims to create a predictable, secure and transparent environment for EU and Indian investors, thus helping to generate the higher levels of FDI needed for the Indian economy.

“The cases for the FTA and for an Investment Protection Agreement are stronger than ever. Our economies are complementary and offer each other scale,” he observed.

The ambassador further stated that while the FTA and Investment Agreements can be the game changer, there is more in the EU-India economic relations. The Joint Communication released by the European Commission and the High Representative Kaja Kallas two weeks ago, is a policy document which sets out our vision for the EU-India relations and our policy offer for India, namely on a new EU-India Strategic Agenda.

Among the five pillars, most of them connect to the economy and business, he pointed out.

He said that each of these pillars contains numerous proposals and initiatives for joint action that could deliver tangible results. Such as innovation hubs to mobilise start-ups and facilitate their market uptake; Blue Valleys as dedicated ‘conducive’ platforms for private sector engagement in selected value chains.

Besides, a 'TTC 0.2' zooming in on critical supply chains like semi-conductors; active pharma ingredients; clean tech and biotech and a gateway office to facilitate mobility of skilled workers in the ICT sector are also included in the proposals, he noted.

Delphin further highlighted that the EU is India’s top trading partner, with bilateral trade in goods of 120 billion euros, ahead of the US and China. Adding services, our bilateral trade has reached 180 billion euros.

"This is an impressive figure, but there is a huge potential for growth considering that the EU and India are the 2nd and the 4th largest economies in the world. To unlock this untapped potential EU and India are negotiating the FTA," he added.