India and European Union discuss Free Trade Agreement, price cap on Russian oil

India and the European Commission are eager to “expedite” the dialogue for the Free Trade Agreement (FTA) for “mutually beneficial results”, said Commerce and Industry Minister Piyush Goyal after he met the Executive Vice-President of the European Commission Valdis Dombrovskis in Bali on the sidelines of the G20 Ministerial Meeting on Wednesday.

Following the meeting, Mr. Dombrovskis said, “We agreed to intensify EU-India FTA talks in coming months. Looked ahead to 1st Joint Trade and Technology Council. Also discussed EU/G7 initiative to price cap Russian oil — this would help tackle global energy inflation.”

Wednesday’s exchange between Mr. Goyal and Mr. Dombrovskis came nearly two and half months after the two sides restarted discussion on the FTA that had been frozen for at least eight years. India has launched a series of negotiations with multiple countries such as Canada, Israel, and Bangladesh for concluding special trade pacts that are part of New Delhi’s plans for a post-COVID world economic order.

The trade pact with EU is one of the most lucrative agreements that India has conducted over the past two decades as it will enable India to access the entire EU market.