India-EU FTA: Government, Private Sector Must Seize Opportunity, Says EY's DK Srivastava

• DK Srivastava of EY states that the India-EU FTA's benefits depend on effective utilization by both government and private sector.
• The agreement, finalized after two decades, aims to boost trade by reducing tariffs and requires ratification by the European Parliament and member countries.
• Srivastava highlights defence co-production and co-development as a sector with significant potential for joint ventures and market access.
• The Union Budget 2026 should prioritize funding for defence initiatives and advanced technology sectors like AI and data centers.
• Srivastava emphasizes the need for a balanced fiscal transfer system by the 16th Finance Commission to support both Centre and states, ensuring fairness for lower-income and mineral-rich states.

Why It Matters: The India-EU FTA offers immense potential, but its success hinges on strategic government policies and private sector engagement.