India, EU FTA negotiation priority, both sides pushing for early deal: MEA

Negotiations for a Free Trade Agreement (FTA) between India and the European Union remain a priority, with both sides pushing for an "early and ambitious" deal, said the Ministry of External Affairs on Monday, hours after bilateral talks between Prime Minister Narendra Modi and his Spanish counterpart Pedro Sanchez here.

During their bilateral talks at the Laxmi Vilas Palace in Vadodara, PM Modi and Sanchez discussed a wide range of topics, including trade, defence, and technology collaboration.

Responding to a query from ANI whether the two leaders discussed the FTA, MEA Secretary (West), Tanmaya Lal, said, "The negotiations on an FTA and investment agreement between India and the European Union are ongoing."

 

The agreement is aimed at further boosting bilateral trade and investments between the two regions . The two sides are negotiating a free trade agreement, an investment protection agreement and an agreement on geographical indications (GIs).

"This is an issue which is of interest to both sides, including India and Spain. Both want an early and ambitious agreement to be finalised, which will be in the interest of both sides," he added.

The FTA negotiations between India and the EU, which have been ongoing since 2007, have seen periods of stagnation and revival.

Talks resumed with renewed vigour in 2021 after a nearly eight-year hiatus, focusing on reducing tariffs, addressing market access challenges, and facilitating investment flows between the two regions.

Prime Minister Narendra Modi met Spanish Prime Minister Pedro Sanchez on Monday in the Durbar Hall of the historic Laxmi Vilas Palace in Vadodara, following the inauguration of the Tata-Airbus C-295 aircraft assembly facility. The two leaders shared lunch at the palace, which was constructed in the late 19th century by Maharaja Sayajirao Gaekwad III, the former ruler of Baroda.

During their bilateral meeting, PM Modi extended a warm welcome to his Spanish counterpart, saying, "This is your first visit to India. We missed your presence at the G20 Summit in New Delhi last year. I am delighted to welcome you to India during the festival of Deepawali in the same Vadodara where I first became a Member of Parliament and later assumed the role of Prime Minister."

He added, "Gujarat is known as the land of festivals and celebrations. Diwali symbolises light, joy, enthusiasm, energy, and new beginnings. Likewise, your visit has brought renewed energy and enthusiasm to our relationship."

During the special briefing following the bilateral talks, Tanmaya Lal further detailed the scope of India-Spain cooperation during the visit, mentioning the signing of a Memorandum of Understanding (MoU) on cooperation in railways. "An MoU on cooperation in railways has been signed, which will look after the maintenance, safety, and other training aspects," he said. Lal highlighted the growing economic partnership, noting, "The total figure of trade is increasing. It is very substantial now, USD 10 billion. Also, the investment by various companies in each other's countries is increasing."

Earlier in the day, the two leaders inaugurated the Tata Advanced Systems Limited (TASL)-Airbus facility in Vadodara, Gujarat.

This facility, which marks the first private sector final assembly line for military aircraft in India, will manufacture the C-295 aircraft, a key element of India's defence modernisation.