In an exclusive interview with CNBC-TV18, Sefcovic mentioned that the agreement has been crafted in a balanced manner, with safeguards for sensitive product lines while both sides progress toward extensive tariff liberalisation.
He noted that the India-EU FTA aims to liberalise tariffs in 97–99% of sectors, though not all products will experience complete duty reductions. “Certain product lines will have quotas and partial tariff cuts, whereas others will be fully liberalised,” he explained.
Trade, Jobs and Investment Gains
Sefcovic remarked that the deal could potentially double job creation and investments from EU companies in India compared to current figures. He added that both sides aim to double the trade in goods and services from the existing $180 billion.
“EU companies are expected to save approximately €4 billion each year in customs duties once the FTA is enacted,” he stated.
The EU hopes to implement the agreement by 2027. Moreover, both sides are collaborating on a rapid response mechanism to tackle administrative and legal obstacles that presently hinder bilateral trade.
Since 2000, EU companies have invested $117.4 billion in India, representing 16.5% of total foreign direct investment, with roughly 6,000 European firms operating in the nation. Conversely, Indian companies have invested $40.04 billion in the EU.
Autos, Wines, IT, Pharma and Textiles to Gain
Sefcovic indicated that the agreement would provide advantages across various sectors, including automobiles, wines, IT services, pharmaceuticals, and textiles.
“You will observe a beneficial arrangement for both the EU and India in areas like automobiles, wines, and more,” he added, highlighting that India’s strong IT workforce and pharmaceutical expertise are highly regarded in Europe.
The EU is striving to enhance market access for India’s labour-intensive exports, particularly in textiles.
On the topic of automobiles, Sefcovic acknowledged differences in market structure, mentioning that the European car market is approximately 2.5 times larger than that of India. Negotiators are exploring a combination of quotas and phased tariff reductions to accommodate sensitivities on both sides.
Discussions regarding market access for European wine and spirits have also been encouraging, albeit within the agreed parameters concerning agriculture and dairy.
Strategic Hedge Against Global Volatility
Sefcovic emphasized the strategic significance of the FTA, asserting it would assist both India and the EU in mitigating global economic volatility and lessening dependency on the US and China.
The negotiations are occurring at a time when high US tariffs have disrupted global trade patterns, prompting both India and the EU to seek diversified markets and supply chains. Currently, the EU accounts for 17% of India’s exports, while India receives about 9% of EU exports.
QCOs, GSP and Ratification Timeline
Sefcovic mentioned that Quality Control Orders (QCOs) were thoroughly discussed with Indian authorities, emphasizing that alleviating such barriers would foster trade growth.
He expressed encouragement regarding Commerce Minister Piyush Goyal’s advocacy for the swift ratification of the deal. Goyal has previously referred to the India-EU FTA as the “mother of all deals.”
