New Delhi: Prime Minister Narendra Modi today said that the free trade agreement between India and the European Union has been finalized. He said that the eyes of the whole world are on this agreement. According to a BBC report, India and the European Union have finalized a major trade agreement after nearly two decades of negotiations. Under this agreement, taxes on alcohol and luxury cars coming from Europe will either be abolished or will be collected at a very low rate, which will make big cars and alcohol cheaper. It has been learned that the tax on these cars has been reduced from 110 percent to 10 percent.
Prime Minister Modi called it a historic milestone and a powerful symbol of cooperation between the world's two largest economies. The Prime Minister, in his inaugural address at the fourth edition of India Energy Week, said that this historic agreement is expected to open up vast opportunities for 1.4 billion citizens of India as well as millions of people across Europe. Prime Minister Narendra Modi, while virtually inaugurating the India Energy Week, said that India is growing rapidly in the energy sector. India has been providing opportunities to meet the global energy demand. Mr. Modi termed it as the most important of all deals.
The deal will come into effect after the approval of the European Union Parliament
The agreement between India and the European Union aims to strengthen economic ties between the two regions amid the disruptions in global trade caused by US tariffs. This agreement has been concluded after almost 18 years. Negotiations in this regard began in 2007. Prime Minister Modi has termed it as the mother of all deals signed by India so far.
That's why European Commission President Ursula von der Leyen is on a four-day visit to India. European Council President Antonio Costa and von der Leyen also held talks with Prime Minister Narendra Modi today. The deal between India and the 27-nation bloc of the European Union may take some time to implement as it needs the approval of the European Union Parliament.