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India-EU FTA Deal: Scott Bessent, the 79th United States secretary of the treasury, has remarked that the European Union (EU) has “backstabbed” Kyiv and team Zelensky by signing a free trade deal (FTA) deal with India.
The comments of Bessent exposes the “serious” cracks in Western Unity that has been tarnished to new lows by US President Donald Trump’s obsession for Greenland and tariffs on European countries.
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India-EU FTA Deal: Bessent’s Reaction
Bessent remarked that the European Union has been buying refined products made with Russian oil supplies in India. The United States secretary of the treasury remarked Europe has put trade before the sacrifices of people from Ukraine though it claims to feel too much for Ukrainian people.
Under the India-EU FTA deal, India would cut tariffs on EU exports by as much as 96.6 percent. One-third tariff reductions would become effective on an immediate basis while the pact becomes fully operational by early 2027. In contrast, the European Union would be eliminating tariffs on 99 percent of exports from India over a period of 7 years.
FTA deal-Narendra Modi’s Economic Diplomacy Win
The India-EU FTA deal would unlock a $1.5 trillion trade powerhouse for India. Sectors like Indian gems, pharmaceuticals, auto parts and textiles would gain massively. This could easily translate to export boosts by $100 billion annually.
Italian machinery, French wines, German cars and more would be more accessible to Indians. Furthermore, the European Union would be able to explore India’s 1.4 billion consumers, especially after the US markets have tightened policies for EU under Trump’s protectionism.
Why is India “Sitting Pretty”?
The India-EU FTA deal gives India economic muscle and the leverage to explore strategic neutrality. The deal also greatly shields the country from US tariff threats while it would help EU de-risk from China.
The trade deficit of India with the European Union (currently $80 billion) could halve, creating more than 2 million jobs in export hubs such as Tamil Nadu, Telangana, Andhra Pradesh, Maharashtra and Gujarat.