Syllabus: GS-III
Subject: Economy
Topic: Trade and External Sector
Issue: India-EU FTA
Context: Ongoing negotiations for a free-trade agreement (FTA) between India and the European Union.
- The European Union (EU) , the United States and West Asian countries, are the major export destinations for Indian garments.
- The EU is the second largest export destination for India, after the US.
| Free Trade Agreement (FTA)
A free trade agreement reduces barriers to imports and exports between countries by eliminating all or most tariffs, quotas, subsidies, and prohibitions. India-EU FTA: ● It is a proposed trade agreement. ● In 2021, the EU and India agreed to resume negotiations for the FTA which are ongoing. |
