Trade Relationship Between India And The European Union

Abstract

India's economic growth positions it as one of the fastest-growing economies globally. India is a substantial and dynamic market, exhibiting an annual GDP growth rate of approximately 6.1% in 2019, as reported by the IMF, and increasing to 7% in 2020. Recently, numerous institutions have revised downward their growth projections for India owing to a worldwide economic slowdown. India is a significant participant in global economic governance. India maintains significant commercial and investment links with the EU. India was among the nations that established connections with the EU. An essential mechanism in this context is the EU-India trade subcommission, established under the 1994 cooperation and partnership agreements between the EU and India, which convenes annually. Since 2007, India and the EU have been negotiating broad-based trade and investment accords (BTIA). The European Union is India's foremost trading partner, representing €92 billion in trade in 2018, which constitutes 12.9% of India's overall commerce, surpassing China (10.9%) and the United States (10.1%). The trade of goods between these two entities surged by 72% over the past decade. The EU-India trade and investment partnership encompasses a broader scope, including Sustainable Development Goals (SDGs); for instance, India has hosted "The International Solar Alliance" in collaboration with France. This document presents an extensive literature assessment of the trade relations between India and the European Union (EU). It examines the historical development, present dynamics, and future potential of this important economic connection. This review examines existing scholarly literature, policy reports, and trade data to elucidate significant trends, difficulties, and opportunities within the India-EU trade partnership.