India has started trade talks with the European Union (EU) and is open to dialogue with the United Kingdom for a free trade agreement.Negotiations for a comprehensive free trade agreement between the EU and India were suspended in 2013 after six years of talks.

“We’re talking to the EU and I am in dialogue with the EU trade commissioner. I am looking for an early harvest deal. Open to discussions on a variety of subjects. It’s up to the UK and EU whoever picks up the gauntlet first,” Piyush Goyal said.

Piyush Goyal is also in dialogue with the European Union’s trade commissioner for a deal that could start with a preferential trade agreement. He added that the ultimate goal here too would be to have a free trade agreement.

“Apart from pharmaceuticals, we have textiles, handicrafts, leather, furniture, industrial machinery, toys are areas where India can engage with UK & EU at competitive prices,” Goyal said.

With more than $140 billion combined trade in goods and services in 2018-19, the EU has been India’s largest trading partner. Compared to a huge trade deficit with China, India-EU trade is balanced. In the last 20 years, FDI from the EU (including the United Kingdom) has been more than the combined investment inflows from the United States, Japan and China put together.

Background

The stage is all set for India and the European Union (EU) annual summit virtually on Wednesday (July 15) after almost two years, where the agenda of talks will be focused on several issues including the India-EU FTA and finding a treatment for the coronavirus.

The virtual summit will be attended by Prime Minister Narendra Modi, Charles Michel, president of the European Council (which defines the EU’s political direction), and Ursula von der Leyen, president of the European Commission (EU executive branch).