‘Mother of All Deals’ can boost India’s traditional manufacturing to new heights

New Delhi/Brussels:  By announcing the much awaited  India-EU  Free Trade Agreement   today,   the wind of  trade is going to  turn into a pleasant breeze  soon, after a year of Tariff  tension from American lawmakers . Though all deals are for  mutual  benefits,  this one FTA  (signed after 17 rounds of negotiations since 2007), has the potential to boost Indian manufacturing manifold, both in  volumes and  value addition provided Indian  industry  doesn’t  abandon the  path and  pace of  technology upgradation, persued by PM Modi regime for the last 11 years.

Though  minute details on  various agreements will have to be worked out,  industry-wise  and product-wise, none of the signatories  should  lose the opportunity to goody-goody  sentiments  and  complacency. 

Hidden in the Deal,  you will find competition for  Indian Automobile industry, Defence production and export, Aircraft industry  due to availability of cheaper and latest components, machinery industry;  Chemicals-Pharma and domestic Wine-Beer distillers due to reduced taxation on imported  brands and their popularity.  As emphasized by  India’s Republic Day  Chief Guests on Monday,  EU President Antonio Acosta  and  European Commision  Chief Ursula von der Leyen,  the deal is an effort to stabilize the  disturbed World order that has  forced many a  global leaders spend sleepless nights over past 9 months,   Indian industry should  continue technogy assimiliation, upgradation and  investment to stay relevant for future.

Take Away from the Mother of All Deals,  for traditional Indian industry viz., Textiles, leather goods, Handicrafts, Gems & Jewellery,  IT Services and  gadgets like Smart mobiles, Apple,  Computers etc.                                                                                  The reduction in  Customs Duties and taxation for Indian goods from 50% to Zero percent will be a big boost for Indian exports to the EU and allied markets. The Trade Balance between India-EU,  which stands  in favour to India  at  $71.4 billion  Vs $48.8 billion, needs  to  be maintained in the targetted double  to $ 270 billion by  2032.  India scores in  most of the raw materials and cheaper labour,  yet  lacks in quality and delivery schedules, on which the Western buyers are very ticklish and there lies the profitability.

There needs to be a better synergy between quality upgrade,  pricing and  production schedules to make the Deal  beneficial to both sides.  By getting the  FTA  with 27 -member European Union, Indian  manufacturing  will  have  a  big relief and boost, after alomst  a year of Tariff Tantrums of US President Trump and his administration, who had been  building up  nerve -breaking  pressure on India by pushing up Tariffs  from 25% to 50% and 75%.  Many of the US administration  officials were using slanging  verbos against India and PM Modi, on the pretext of  buying Russian crude while ignoring the Europe, China and other countries of the world,  escaping their ire. (US President Trump’s trade advisor Peter Navaro calling Ukraine War as PM Modi’s War, recently).

‘The Mother of All Deals’ that impacts lives of almost 2 billion (200  crores)  population, must target to nullify the impact of US  Tariff  hype across the Globe, sending  nerve straining impact on already jolted   economies of most  countries for the last 3 years, facing crunch due to Russia-Ukraine War, Israel-Palestine War, US-Iran  tension build-up  and India-Pak-Bangladesh  communal tensions.  The Deal must get support from over 8 lakh Indians diaspora  working or settled  in Europe and benifit all sections of Societies in  EU and India,  and boost innovation, investment, defence and  security for all, in the coming years !!!                                                                                                                   ––Editor

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