The historic Free Trade Agreement or FTA between the European Union and India has been described by Alexander Proll, State Secretary at the Federal Chancellery of Austria, as the “mother of all deals”. He has termed it a big opportunity in the field of business, Artificial Intelligence (AI) and strong supply chain. Prol said the agreement will benefit approximately 2 billion people and, when implemented, will create one of the largest free trade zones in the world.
Prime Minister Modi’s visit to Austria and FTA
Proll reminded that Prime Minister Narendra Modi had visited Austria in 2024, marking the 75-year-long diplomatic relations between the two countries. The visit followed an agreement on an EU-India Free Trade Agreement, which he described as a “win-win situation” for both the EU and India.
Major benefits of FTA
Upon implementation of this agreement, duties on 96.6% of products going from EU to India and 99.5% of products going from India to EU will either be eliminated or reduced. This will open new opportunities for both the countries in the field of trade and promote economic cooperation.
Artificial Intelligence and Digital Collaboration
Proll described AI as the main area of future cooperation and said, AI should be human-centric. We must develop AI that works for people, protects democracy, and promotes innovation. This will give both the countries an opportunity to learn from each other.
Global supply chain and partnerships
The purpose of Free Trade Agreement is not to create separation between countries, but to increase interdependence. Prol said this is not a policy of isolation, but an effort to increase interdependence on both sides and bring the countries closer. This agreement is an important step in this direction. The EU-India FTA is currently subject to final legal review and approval by the European Parliament, as well as approval through India’s procedures. According to experts, it can be implemented within the next few months to a year.
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