A STUDY ON TRADE RELATIONS BETWEEN INDIA AND THE EUROPEAN UNION

Abstract

For the last 60 years India and the European Union have been trading partners it is one of the longestrunning
trade bilateral relations ever held between two countries. The trade was rst started after the
joint political statement which was introduced in 1993. After several years of trade India and the European Union became
strategic partners in 2004. The next year a joint action plan was introduced which stated the India-EU trade relationship. The
trade agreement between India and the European Union on which both parties are working since 2007 is Broad-Based Trade
and Investment Agreements (BTIA). The EU is India's third largest trading partners they traded goods amounted for 88 million
Euros in the year 2021. The EU is the second largest market for the Indian exporters to sell goods after China and USA. In the
past few decades the trade between India and EU has increased more than 30%. The EU is also one of the leading investors in
the Indian markets. In the past few years the EU has a FDI of more than 86.3 million Euros. There are around 6000 companies in
India which is currently working in India and is providing funding to various new ventures in India. The main reason to establish
an FTA is to have a transparency between each other as a friendly countries. As of now India's trade regime and regulatory
environment remains relatively restrictive. The exit of UK (BREXIT) from the EU has also created a huge impact on the trade
between India and EU as UK was one of the leading importer of the Indian goods in the European Union. But for no India and UK
are also separately working on a free trade agreement. The two of the countries which introduced the idea of trading with India
was France and Germany.