India–EU trade deal a long-awaited milestone, says former Assam Chief Secretary

Guwahati, Jan 31: Talks between India and the European Union for a trade agreement started way back in 2007 and it took 19 years to sign the agreement, and perhaps the increased tariff imposed by the US hastened the process.

This was stated by former State Chief Secretary Kumar Sanjay Krishna who was part of the Indian delegation when talks started between India and the EU in 2007 as he was the Joint Secretary in the Department of Economic Affairs under the Union Finance Ministry at that time.

When contacted by The Assam Tribune, Krishna said the talks progressed well at the beginning and several rounds of meetings were held, both in India and Europe. But unfortunately, the talks slowed down after 2011-12 as both parties failed to come to an agreement on concessions on some issues.

Krishna said that in the last five years, the talks gained momentum again and perhaps the increased tariff imposed by the US hastened the process, which resulted in signing of the trade deal on January 27.

The deal has been termed as the “mother of all agreements” as both India and EU nations will be hugely benefited.

The former Chief Secretary said that different countries have different policies, and when a deal is signed with the EU, it would be easier for traders to deal with all the EU countries as a common platform. The exporters can plan for a long term when such a deal is in place, he added.

Krishna, who was also the Chairman of the Assam Electricity Regulatory Commission, said the power sector would be hugely benefited from the trade deal.

He pointed out that the FTA includes provisions on technical barriers to trade and conformity assessment, which could help Indian electrical equipment manufacturers meet EU standards more easily, facilitating exports of power generation and distribution equipment.

While the Carbon Border Adjustment Mechanism (CBAM) poses a cost risk for Indian exporters – estimated at USD 2-4 billion annually – once fully implemented in 2026, it has become a catalyst for dialogue on aligning India’s emerging carbon market with EU standards.

The two sides will reactivate the Joint Working Group on Energy Security, which would focus on dialogue on diversifying reliable and affordable energy sources, potentially benefiting India’s nuclear power expansion plans.

India is planning a massive deployment of offshore wind energy blocks for a total of 37 GW by 2030. The FTA framework includes cooperation on offshore wind energy technologies where European companies have significant expertise.

Krishna revealed that after the agreement, Europeans will get cheaper textiles, gems and jewellery, generic medicines, spices, sea food, chemicals, IT services, etc.

On the other hand, European products like high-end technical equipment, industrial machinery, wines, luxury chocolates, and cars, among others, will get cheaper in the Indian markets.