The proposed India-EU trade agreement could boost exports and create employment in labour-intensive sectors such as footwear, textiles, toys and processed products, particularly benefiting micro and small enterprises, Union Finance Minister Nirmala Sitharaman said.
Speaking at the Munich Leaders Meeting, Sitharaman said greater access to the European market would provide opportunities for increased exports and job creation in these sectors.
“More exports, more jobs” could result as products such as footwear, textiles, toys, processed materials and components gain access to the large European market, she said.
Sitharaman noted that textiles, although also produced by larger companies, remain highly labour-intensive and provide significant employment, particularly for women.
She said India has opened 92.5 per cent of its tariff lines, representing around 97 per cent of tariff value, under the proposed agreement. The EU, meanwhile, has opened around 99 per cent in value terms and possibly 97 per cent of tariff lines.
India-US trade talks reach plateau
On the India-US trade agreement, Sitharaman said negotiations have reached a “plateau”, with further concessions from either side likely to be difficult.
The negotiations are continuing and remain “hard and very rigorously” conducted, she said, adding that both sides could still explore any limited room for compromise.
Sitharaman also highlighted the trade imbalance as a key feature of India-US economic relations.