As per the official data, India has received an impressive USD 24 billion in Foreign Direct Investment from the 28-nation bloc European Union over the last three years.

FDI From EU

The EU has been India’s largest trading partner and the two-way trade is likely to swell significantly if the countries could firm up the long-pending Free Trade Agreement, officially called the Broad based Investment and Trade Agreement (BTIA).

The EU has been maintaining that it was ready to show flexibility on all major issues that have stalled the talks as the FTA will be a “win-win deal” for both the sides. The EU was also looking at insurance, banking and retail as major areas for economic engagement with India. On the other hand, India is asking for granting ‘data secure nation’ status. The country is among nations not considered data secure by the EU.

What is a Free Trade Agreement?

• FTAs are designed to reduce the barriers to trade between two or more countries, which are in place to help protect local markets and industries.
• Lowering trade barriers helps industries access new markets, boosting their reach and the number of people they can sell their products to.
• FTAs are also ultimately designed to benefit consumers. In theory, increased competition means more products on the shelves and lower prices.

Test Your Knowledge

Which country tops the List of FDI Sources for India?