NEW DELHI: Three developed economies – america, the European Union and the UK – purpose to determine a reliable provide chain in India as a corollary to their proposed commerce offers with New Delhi, folks within the know mentioned on Monday, including that the matter has been mentioned throughout current visits of Indian officers to the US and Europe.
Stacks of containers seen inside a container terminal in Kolkata on February 13, 2025. (REUTERS FILE)
A mutually useful, cost-effective collaboration in a number of manufacturing sectors is feasible below the funding chapter of the proposed free commerce agreements (FTAs), they mentioned, requesting anonymity. FTA companions can leverage one another’s strengths to construct sector-specific provide chains and turn out to be aggressive in worldwide markets, they mentioned, including {that a} free commerce deal between India and the US would give Apple immense confidence in making India as a producing base. Already, there are stories that Apple plans to supply all US iPhones from India in two years.
“Many multinational firms of Europe are also contemplating to establish similar supply chains in India for their manufacturing ventures. For them, India is cost competitive with the required skilled manpower, resources and rule of law. An FTA will ensure that their investments are well protected,” considered one of them mentioned, including that the matter was additionally mentioned with the opposite sides in the course of the FTA negotiations.
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Final week, commerce secretary Sunil Barthwal visited the Netherlands and the Republic of Croatia, each members of the EU. On April 22-23, he held bilateral discussions with Croatian state secretaries for overseas commerce and financial system to advance commerce and funding relations and promote sectoral collaborations. Their discussions additionally centred round taking ahead the EU-India FTA negotiations.
“The meeting took place days after the visit of the EU president and 27 commissioners to India. That was the first visit of the College of Commissioners outside the European continent since the start of their new mandate and also the first such visit in the history of India-EU bilateral ties,” a second individual mentioned.
Moreover officers, Barthwal met business representatives within the Netherlands final week. There he additionally met semiconductor main ASML. “The CS [commerce secretary) held productive talks with CEO Mr Christophe Fouquet, and discussed deepening cooperation in the semiconductor industry. This engagement underscores India’s commitment to fostering innovation and strategic partnerships in high-tech industries,” said the person quoted above.
A similar response was received by the Indian negotiating team that went to Washington last week under the leadership of chief negotiator Rajesh Agrawal, the person said. “The meeting was positive as both have complementary strengths that can help in the growth of bilateral trade and form a robust supply chain. For example, India can be a hub for supplying APIs [active pharmaceutical ingredients] for molecules developed by the US,” he mentioned.
All of the three FTA negotiations contain constructive deliberations and are progressing quick in the appropriate course. They’re prone to be finalised by the top of this yr, the folks talked about within the first occasion mentioned. “In all likelihood, the FTA with the US is expected to be the first, followed by the UK and then by the EU, because a consensus is difficult in the European Union because it has 27 members,” the second individual mentioned.
India is concurrently negotiating separate FTAs with the UK, the EU and the US (formally generally known as a bilateral commerce settlement or BTA). India and the UK’s FTA talks began on January 13, 2022. The deal obtained delayed due to contentious points and political modifications in London. Now it’s progressing quickly for the reason that 14th spherical of talks resumed in February 2025. India and the EU resumed their FTA negotiations in June 2022 after a niche of 9 years.