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The EU is in prime position when it comes to global trade: it is the world’s largest economy. It is also the largest trading bloc in the world. On the other hand, with GDP growing at more than 7%, India has emerged as the fastest growing major economy in the world and it is expected to become one of the top global economies.
Both India and the EU have vast domestic markets and a strong entrepreneurial tradition. There is enormous potential for both sides to benefit from reinforced trade, economic and investment relations. The EU is already India’s first partner in terms of trade and actual investment inflows. Bilateral trade in goods and services amounts to €125 billion with a growing share for services. In both cases, and contrary to what happens between India and other trading partners, the import and export flows are balanced. This proves the complementarity of the two economies. There are more than 6,000 EU companies established in India. They are important stakeholders in the Indian economy, contributing to several million direct and indirect jobs.
In order to establish more favorable conditions for bilateral economic exchanges, the EU remains firmly committed to working towards a comprehensive, balanced and mutually beneficial free trade agreement with India. Ensuring a high level of investment protection in order to remain an attractive destination for new investments is also a key dimension of the EU-India partnership.