India–EU FTA touches one-third of world population, marks turning point in global economic engagement: Piyush Goyal

THEBUSINESSBYTES BUREAU

NEW DELHI, JANUARY 30, 2026

Declaring that the India–European Union Free Trade Agreement spans nearly one-third of the world’s population and accounts for about 25 per cent of global GDP, Union Minister of Commerce and Industry Piyush Goyal on Thursday said the landmark pact signals a decisive shift in India’s global economic engagement. Addressing the World Forum of Accountants organised by the Institute of Chartered Accountants of India in Greater Noida, Goyal described the agreement as one of the most consequential trade deals in the world today.

Referring to the remarks of the European Commission President, who termed the India–EU FTA the “mother of all deals,” the Minister said the scale and depth of the agreement reflect the growing strategic and economic convergence between India and Europe. He highlighted that the European Union alone imports goods worth nearly $7 trillion and services valued at around $3 trillion annually, creating a combined market of approximately $10 trillion. India’s current exports, he noted, represent only a small fraction of this vast opportunity, underscoring the immense potential for Indian businesses, manufacturers and service providers.

Goyal said India’s approach to trade has undergone a fundamental transformation in recent years, with the country signing eight free trade agreements over the last four years. These agreements cover some of the world’s most significant economies and blocs, including the 27-nation European Union, the four-nation EFTA grouping of Switzerland, Liechtenstein, Norway and Iceland, as well as the United Kingdom, Australia, New Zealand, the United Arab Emirates and Oman. Together, these pacts are expanding market access for Indian products and services while strengthening India’s role in global value chains.

The Minister added that India is close to finalising a free trade agreement with Chile, which will be crucial in securing access to critical minerals needed for emerging industries and clean technologies. He also highlighted the tangible investment commitments flowing from recent agreements, particularly the EFTA pact, which includes a pledge of $100 billion in foreign direct investment into India. This investment, aimed at infrastructure development, innovation and precision manufacturing, is expected to generate nearly 50 lakh jobs. In another sign of growing confidence, Goyal pointed to New Zealand’s commitment to invest $20 billion in India over the next 15 years, compared to a total investment of only $70 million over the past 25 years.

According to the Minister, such commitments reflect strong global faith in India’s economic growth story, youthful demographic advantage, expanding skill base and institutional credibility. He said Indian professionals are globally trusted, hardworking and aspirational, making them valuable contributors to international business and trade.

Emphasising the role of chartered accountants, Goyal said the profession has resolved to play a central role in India’s journey towards becoming a developed nation by 2047, with an ambition to build a $30 trillion economy. Chartered accountants, he noted, will serve not only as custodians of financial integrity within the country but also as key connectors between India and global investors, enterprises and institutions.

Against the backdrop of a volatile, uncertain and complex global environment, the Minister said the world is going through a turbulent phase marked by rapid change and unpredictability. Amid this uncertainty, he asserted, India stands out as a beacon of stability, supported by strong macroeconomic fundamentals, low inflation, a resilient banking system and robust foreign exchange reserves. Despite turbulence in global trade, India’s exports of goods and services continue to grow, reinforcing confidence in the economy’s resilience.

Recalling India’s transformation over the past decade, Goyal said the country was the world’s 11th largest economy in 2014, but decisive leadership and a shift in national mindset have accelerated growth and instilled confidence across society. India, he said, now engages with the world from a position of strength, negotiating fair, balanced and equitable trade agreements. With confidence in the capabilities of 1.4 billion Indians, the Minister expressed optimism that India will soon emerge as the world’s third-largest economy, powered by professionals, entrepreneurs and global partnerships during the Amrit Kaal.