Consumers in India and the European Union can hope for mutual imports of goods and services at significantly lower duties, as the two sides have intensified talks to reach a free trade agreement within this year.
In a meeting with Ireland Minister for Enterprise, Jobs and Innovation Richard Bruton Ireland here, Commerce and Industry Minister Anand Sharma said both EU and India are "committed to a balanced and ambitious agreement" within this year.
As many as 12 rounds of negotiations -- both in Brussels and New Delhi -- have been completed for reaching the FTA, officially named Broadbased Trade and Investment Agreement (BTIA). The two sides have been negotiating since 2007.
As much as 90 per cent of the bilateral trade in goods and services would be covered under the pact, by far the most ambitious by India so far. Besides, mutual investment rules would be relaxed.
With bilateral trade in goods at Euro 53 billion (in 2009) and Euro 16 billion in services, EU is India's largest trading partner.
"It is hoped that this agreement will lead to increase in opportunities for market access in both goods and services for each other, Sharma said after his meeting with the minister from Ireland, one of 27 members of the EU bloc.
Differences persist on opening of the market by India on auto and auto components, wines and spirits and agriculture besides the EU demand for stricter enforcement of intellectual property rights by New Delhi.
India has already signed FTAs with the Association of Southeast Asian Nations, Japan and South Korea, while it is in advanced stages of negotiations for the same with individual members of ASEAN like Malaysia and Thailand.
Sharma and Bruton also reviewed the state of bilateral relations between India and Ireland.
Bilateral trade was only $525 million in 2009-10, lower than $688 million 2008-09.
"Between April-December 2011, we see positive signs as exports from India to Ireland grew by 1.45%," Sharma said.
Ireland ranks 32nd in FDI approvals during April 2000 to January 2011. Total FDI inflows from Ireland are $103.94 million during April-January 2010-11 period.
The Indian government is committed to provide an environment that promotes investment and trade,Sharma said.
