India-EU FTA: "Biggest Trade Deal" Expected Next Week, A Game Changer for India

• India is poised to sign its largest trade deal yet, a Free Trade Agreement (FTA) with the European Union (EU), potentially on January 27.
• The EU is already a major trade partner for India, and this deal is seen as highly beneficial, especially for the textile sector.
• Mukul Kochhar of Investec Capital Services highlights the EU as a larger importer of textiles than the US, offering India a clear path to replace Bangladesh in the EU market.
• India has successfully kept sensitive domestic sectors like agriculture and dairy out of the deal, ensuring stability and protecting local interests.
• The FTA is expected to strengthen India's current account, stabilize the rupee, attract investment, and boost exports in labor-intensive sectors like textiles and engineering.

Why It Matters: India's upcoming FTA with the EU is a game-changer, promising significant economic benefits and rupee stability.