India-EU FTA a major shift in global trade, says Goldman Sachs report

The upcoming India-EU FTA will be a major shift in global trade realignment, says a Goldman Sachs report. Despite limited near-term macroeconomic impact, the pact will deliver benefits at the sector level, cutting tariffs on EU goods like autos.

The long-awaited India-EU Free Trade Agreement (FTA), will mark a major shift in global trade realignment amid rising protectionism, according to a Goldman Sachs report.

Macroeconomic Impact and Limitations

The report highlights the scale of the pact, and said India and the EU together account for "~2bn people, ~25% of global GDP, and around one quarter of the world's population and trade" However, the report cautioned that the macroeconomic impact is likely to remain limited in the near term.

According to the note, even a fully-fledged set of new EU trade agreements would raise EU gross exports by