India, EU Likely To Conclude FTA Next Year: Nath

New Delhi: India and the European Union hope to wrap up a Free Trade Agreement at the next summit meeting to be held in France in 2008, the Minister for Commerce and Industry, Mr Kamal Nath, said on Nov 29.Addressing the eighth India-EU business summit, Mr Kamal Nath felt that calling the agreement, as an FTA was a misnomer. India has been inkin pacts with several countries which are much broader in nature than an FTA. But we have to look after the sensitivities of different sections including the sensitivities of subsistence farmers in India. The Minister added that many extraneous issues including non-tariff barriers and animal welfare issues had been raised in the past.

By deepening economic integration, India and the EU gain not only new markets but also bigger engines for growth. The FTA would considerably increase exports to the EU as also new investments into India, helping the Indian Government to attract the investment it wants for infrastructure improvements. The EU Trade Commissioner felt that an ambitious FTA with India could give a big boost to both economies and shore up global demand if the world economy begins to cool.