India and European Union can soon begin dialogue on free trade pact

Sandeep Chakravarty, joint secretary in charge of Europe West in the Indian foreign ministry, told reporters that “there is forward movement" on the two sides agreeing to reopen talks. The official was speaking after a virtual summit between the prime ministers of India and Luxemburg on 19th November, the first in almost two decades.

"The EU did not have a trade commissioner for some time now. Now there is a new trade commissioner. He has written to Hon’ble Commerce and Industry Minister Mr. Piyush Goyal and discussions are on, on soon having a meeting of the high level mechanism," he said.

India and the EU started talks on a free trade pact in 2007 but negotiations were stalled in 2013 and efforts to resume the negotiations since have not succeeded.

During the summit meeting between Prime Minister Narendra Modi and his Luxemburg counterpart Xavier Bettel, the two sides “exchanged views on strengthening India-Luxembourg relationship in the post-covid world, especially in the areas of financial technology, green financing, space applications, digital innovations and start-ups," an Indian foreign ministry statement said.

The two sides “welcomed the conclusion of various agreements between the two countries, including those between their financial market regulators, stock exchanges and innovation agencies," he said.

According to Chakravarty, “Bettel asked prime minister Modi to encourage Indian companies to raise capital for environment friendly green projects" through the Luxemburg stick exchanges. The tiny European country was one of the largest sources of portfolio investments into India, he said.

"Many Indian companies have GDRs (Global Depositary Receipts) in Luxemburg," the Indian official said adding that Indian companies had raised more than $12- 13 billion dollars.