EU firms must look for trusted partner countries as manufacturing costs surge: Piyush Goyal
The commerce minister’s statement comes as India and the EU prepare to sign a proposed free trade agreement by the end of the calendar year.
European manufacturing is facing higher costs, with Indian Commerce and Industry Minister Piyush Goyal urging companies to seek trusted partner countries to produce goods that are becoming too expensive at home. The IMF predicts 1.3% EU GDP growth in 2026, while India's growth is now forecasted at 7% for FY27. Goyal emphasized the importance of a free trade agreement (FTA) between India and the EU, stressing that it is a symbol of supply chain openness and friendly relations.
Both nations are expected to sign the proposed FTA by the end of the year. Goyal also highlighted that India is investing $200 billion in data centers, a move which will be facilitated by its rapidly decarbonizing economy, offering an advantage under the EU's carbon border adjustment mechanism (CBAM). India's exports to the EU primarily consist of chemicals, machinery, and base metals, while its imports from the EU are dominated by machinery and appliances, textiles, and chemicals.
The EU-India FTA is seen as a significant development, providing access to a market with a collective GDP of nearly $20 trillion.
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