India and the European Union (EU) on Friday decided to sign a bilateral trade and investment agreement covering a wide range of sectors, Indian sources report.
Commenting on the decision,
India's Prime Minister Manmohan Singh stated that the agreement will bring tariff reductions for many products, which will be a win-win situation for both sides.
The agreement, which covers the elimination of 90 percent of tariff lines and increases in trade volumes, will allow
India to increase exports to
Europe of goods in sectors such as agriculture, textiles, leather, chemicals and steel. Moreover, the agreement will give the two economies easier access to each other's markets for goods, services, and
investments.
However, the agreement will also require
India to meet the EU's controversial environmental standards. Commerce Minister Kamal Nath said there would have to be separate negotiations to discuss this issue.