Observers say that the revival of negotiations for a free trade agreement between India and the European Union could have been driven by an unprecedentedly urgent situation.
The decision to resume talks was made a year ago, but current concerns seem to have forced both sides to work out their differences.
These negotiations are not going to be easy. Necessity can be the root of invention. The president of the German Institute for Global and Area Studies said there was an urgent need to deepen India-EU ties.
The threat to Europe's border is due to the authoritarian advance on the borders of both EU and India.
More than a dozen soldiers were killed when soldiers from both sides clashed along the shared border in 2020.
The weaponization of energy and food supplies for strategic purposes reveals that we need more reliable value chains, according to Narlikar.
Sharing political values of democracy and pluralism, India and the EU can and should invest in the free trade agreement.
The deal is expected to double trade between India and the EU in the next five years.
The negotiations between India and the European Commission were resumed in June.
India's Ministry of Commerce and Industry said that both partners are now restarting the talks after a gap of nine years.
In September, the next round of negotiations will be held. The first round of talks was held in New Delhi.
But necessity can be the mother of invention. There is indeed an unprecedented urgency to deepening India-EU ties.
Since they will have to compete against cheaper goods from other markets, it is thought that such deals could be detrimental to domestic producers.
Modi withdrew India from the regional economic partnership. The Association of Southeast Asian Nations, along with China, Japan, South Korea, Australia and New Zealand, signed a free trade agreement.
According to the senior lecturer at the Asia-Europe Institute of University of Malaya in Kuala Lumpur, the Modi government is getting ready to join the regional and multilateral architecture.
The sense of urgency with which the Modi government is approaching trade pacts is reflected in India's decision to join the U.S.-led Indo Pacific Economic Framework in May 2022.
It's important to remember that India and the EU are tough negotiators.
The EU is India's second largest trading partner after the US, according to India's commerce ministry.
It could lead to multiple benefits for both sides, such as greater market access for businesses, help lower tariffs, and ease the movements of goods and people.
India is the 10th largest trading partner of the EU. Bilateral trade for services between them was $30.68 billion in 2020.
In the financial year that ended in March, merchandise trade between India and the EU reached an all-time high of $116.36 billion. India exported $65 billion to the EU for the full year.
While an agreement with the EU is more complex than one with an individual country, it will help companies in the bloc to access the large Indian market.
She said that compromise is needed for Indian firms to win.
She said that India can use an EU-type agreement to initiate domestic reforms and improve standards. There will be some winners and some sinners in a trade agreement. If a country enters into a trade negotiation with the EU, there is need for the domestic sector to prepare.
The Modi government has a strong desire to close the trade agreement. Expectations have to be met in order to close a deal. Both sides need to compromise.
Both India and the EU want to close the deal by the end of the year.
Some analysts said it would be difficult to achieve that target. The talks could be derailed by several sensitive issues.
The deadline next year seems too ambitious since both the parties are inflexible in their trade negotiation approaches.
It would take at least two more years for the deal to be finalized. India's sensitivities with regard to its agriculture sector might make it difficult for the deal to move forward quickly.
Next year seems too ambitious a deadline considering that both the parties are rigid in terms of their trade negotiation approaches.
There are many sticking points, ranging from tariffs over cars and wine to visa rules for the movement of people to provide services, according to Narlikar.
She said that both parties would be well served to approach the negotiations as being more than just about trade.
Commitment to the highest political level and cross agency consultations will be important for European trade technocrats.
She said that recognizing the broader context will encourage both sides to make compromises on trade questions.
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