Formation of European Union has a drastic effect on India's trade.
This may be read in light of trading equations with our biggest partners USA, UK and Germany, where we had miserably failed to bargain given that most of our trade consumables have import exposures from these nations; the European Union will further augment this situation.
EU-India trade talks began well in June 2007. India's rapidly expanding role in the world economy as a buyer and seller make this an important free trade agreement for the EU, as recent research shows.
The EU-India negotiations began well in June 2007. But the hard issues are always left to last in such discussions. The benefits of an agreement for the two nations are especially hard to quantify given importance that each places on hard-to-measure gains in areas like investment and services.
The EU would mean more exposure to a more stable currency vis-a-vis the presently volatile dollar tranche; this would mean healthier earnings and repatriation.
India's rapidly expanding role in the world economy as a buyer and seller make this an important target for the EU. It would be an agreement well worth having. Of course, such bilateral progress should come in addition to, rather than in place of progress in the WTO's current multilateral talks (the Doha Round) but such progress depends only partly on the EU's stance. From the Indian side, the free trade agreement would be a move from its reliance on a unilateral liberalisation policy with extreme reluctance to commit multilaterally.