New Delhi, Feb. 10: India and the European Union today agreed to speed up negotiations to conclude the free trade agreement later this year, which will double bilateral trade to $200 billion by 2013.
"The negotiations have progressed steadily… our positions are now closer in all areas and the contours of the final agreement are emerging. We have, therefore, committed to intensify these negotiations. I expect the finalisation of these negotiations this autumn," European Commission president Jose Barroso said.
Prime Minister Manmohan Singh said considerable progress had been made during a one-day summit with top EU officials in resolving market disputes that had prolonged free trade talks into the fifth year. "There are complex issues involved, but we have both agreed to expedite discussions," Singh said.
The EU is India's largest trading partner, accounting for 14 per cent of foreign trade, and both the sides are eager to reach a deal quickly to double trade to around $200 billion by 2013 from $107 billion this year.
The deal will help both the sides come out of the economic slowdown and open the door to each other's market and investment flows.
The joint statement said, "Negotiations on an ambitious and balanced package are now close to completion which is expected to provide a new thrust to bilateral trade, investment and economic co-operation. This is especially significant in the context of the current economic climate so as to provide a new impetus to growth."
While the EU is in the midst of an economic turmoil, India is hopeful that the easier market access to its largest trading partner will help it to spring back to the near double-digit growth from below 7 per cent expected this fiscal.
"Greater investment flows in both directions is a win-win proposition… India especially welcomes EU participation in our growth agenda," Singh said.
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