India made big strides on the trade front during the G7 meeting in France. Prime Minister Narendra Modi, who was attending the keynote meeting at Evian-les-Bains, met several global leaders and major economic developments are in the pipeline in India.
Timelines have been set for two major trade deals for India, and US President Donald Trump also shared a major update on the ongoing trade negotiations with India. Follow live updates on the G7 summit here.
Here’s a look at India’s big breakthroughs:
- Prime Minister Modi met his British counterpart Keir Starmer and it was decided that the Comprehensive Economic and Trade Agreement between India and the United Kingdom will be implemented from July 15. This will greatly enhance bilateral trade and investment between the two countries.
- India and Canada issued a joint statement following a meeting between Modi and Canadian Prime Minister Mark Carney. The statement noted “the two leaders’ satisfaction with the progress made in the negotiations towards the Comprehensive Economic Partnership Agreement (CEPA)” and reaffirmed their “shared goal of concluding the negotiations in 2026.”
- European Commission President Ursula von der Leyen said after her meeting with Prime Minister Modi that the European Union will formally sign its landmark trade agreement with India by the end of this year. The agreement was reached last January and aims to boost bilateral trade and reduce dependence on American resources. “Since we concluded the most important trade deals, we have been moving quickly to fulfill our commitments. We will sign the free trade agreement by the end of the year,” he added.
- US President Donald Trump met Prime Minister Modi for bilateral talks and said Washington and New Delhi are “very close” to finalizing a long-awaited trade deal. This represents a major shift in relations that were strained by the imposition of 50% tariffs on Indian goods last year. The fee was later reduced to 18%.
The trade deal between India and the UK was finalized last year but there has been no update on when it will be implemented. When Prime Minister Modi announced its implementation date, he said that the trade deal will open many opportunities for Indian farmers, workers, startups and innovators. “This agreement will significantly boost our bilateral trade and investments. It will also open numerous opportunities for Indian farmers, workers, SMEs, startups and innovators and will contribute meaningfully to the realization of Vixit Bharat 2047 vision,” he said.
Similarly, the trade agreement between India and the European Union was reached in January this year when the European Commission President was visiting India. Signing the deal by the end of this year could allow it to come into force in 2027. According to a Bloomberg report, the deal could double EU exports to India by eliminating or reducing customs duties on 96.6% of traded goods by value.
