New Delhi [India], May 7 (ANI): The India-European Union Free Trade Agreement (FTA) will cover nearly one-third of global trade and touch around 2 billion people, making it one of the world's biggest trade deals, Additional Secretary in the Department of Commerce Darpan Jain said while addressing a Federation of European Business in India (FEBI) event on 'Decoding EU-India FTA.'

Calling it the 'mother of all deals,' Jain said the agreement covers 'almost one fourth of global GDP' and 'around 11 trillion' dollars in global trade.

'So on all these parameters, size of trade, size of economy, number of people it touches, it is, I think, one of the biggest deals,' Jain said at the event.

He said the agreement is comprehensive and goes beyond tariff cuts, covering trade in goods, services, digital trade, telecom, financial services, intellectual property rights and regulatory practices.

'Services exports are growing very, very fast. If we see the last 10 years' growth trends, services exports are growing at double the pace at which goods exports are growing,' Jain said, adding that India's goods exports stood at USD 442 billion while services exports were at USD 421 billion this year.

The remarks came as European businesses highlighted the potential of the FTA to deepen supply chain integration, manufacturing and investments in India.

BMW Group India President and CEO Hardeep Singh Brar said the agreement could significantly transform India-EU automotive trade relations through tariff rationalisation and stronger supply chains.

'As you know, the imports today are pegged at 110 per cent for the cars which are more than USD 40,000... in the first year when it kicks in, it comes down straight from 110 per cent to 40 per cent,' Brar said.

He said the agreement would help India become a stronger player in global automotive supply chains.

'A lot of players in Europe are looking at the Indian supply chain. It is very, very competitive and the quality levels are really high,' he said.

Brar, however, sought clarity on implementation timelines and quota mechanisms under the FTA.

'The delay in implementation will potentially lead to customers postponing purchases, which is not good, because everybody is anticipating lower prices,' he said.

Speaking at the event, Biesse India CEO Sayeed Ahmed said the FTA would support India's manufacturing ambitions by improving access to advanced European industrial machinery.

'Europe really has these kinds of products. We get the quality, the precision, the automation. And these kinds of products really will become the backbone of industrial growth in India,' Ahmed said.

He added that India is increasingly emerging as a manufacturing and export base for European firms.

'We export to almost 80 countries from India. And about 80 per cent of what we make in India, we design here and we export to the world,' he said.

A study was also released during the event on the 'Economic Footprint of EU Businesses in India', which showed that 5,833 EU firms are currently operating in India, generating an estimated turnover of EUR 186 billion in FY24.

The report said EU firms generated nearly 6 million jobs in India, including 3.7 million direct jobs, while goods exports attributable to EU firms stood at EUR 23.5 billion in 2024.

According to the report, EU-India goods trade reached EUR 120 billion in 2024, nearly doubling over the last decade, making the EU India's largest trading partner in goods. (ANI)