Moody's: India-EU FTA 'Credit Positive,' Boosts Manufacturing & Exports

• Moody's Ratings deems the India-EU Free Trade Agreement (FTA) 'credit positive' for India, citing lower tariffs and improved market access.
• The FTA supports India's strategy to expand domestic manufacturing, attract foreign investment, and enhance global competitiveness of labor-intensive exports.
• Prime Minister Narendra Modi announced the historic FTA with EU leaders Ursula von der Leyen and Antonio Costa, calling it a 'new blueprint for shared prosperity'.
• Lower tariffs on EU goods could reduce input costs for Indian manufacturers, while European automakers gain easier access to India's car market.
• Moody's emphasizes that the FTA's success hinges on India's domestic reforms, including business friendliness and regulatory streamlining.

Why It Matters: The India-EU FTA is a credit positive development, poised to boost India's manufacturing, exports, and economic ambitions.