India-EU FTA credit positive for India; to boost manufacturing, attract foreign investment: Moody's
The Hindu
Moody's says the India-EU FTA will enhance India's manufacturing, attract investment, and boost export competitiveness through lower tariffs.
The India-EU free trade pact will be credit positive for India as lower tariffs and better market access will help attract foreign investment, boost manufacturing and boost export competitiveness of the labour intensive sector, Moody's Ratings has said.
India and the European Union on Wednesday (January 28, 2026) had announced the conclusion of negotiations for the Free Trade Agreement (FTA), described as 'mother of all deals', under which 93% of Indian shipments will enjoy duty-free access to the 27-nation bloc, while import of luxury cars and wines from the EU will become less expensive.
The deal, concluded after negotiations spanning about two decades, will create a market of about 2 billion people across the world's fourth-largest economy, India, and the second-largest economic bloc, the EU.
In a commentary, Moody's Ratings said India's conclusion of its trade negotiations with the EU reflects its continued efforts to selectively diversify trade relationships.
"When in effect, the FTA will be credit positive, with lower tariffs and better market access supporting India’s ambition to develop its manufacturing sector, attract foreign investment, and strengthen the export competitiveness of its labour intensive goods," Moody's said on Wednesday (January 28, 2026).
The free trade pact is expected to be formally signed and implemented this year.
Stock markets recover as Sensex and Nifty bounce back following a three-day slump, driven by value-buying in blue-chip stocks.
U.S. President Donald Trump’s administration is set to receive a roughly $10 billion fee from investors in the recently completed deal to take control of TikTok’s U.S. business, the Wall Street Journal reported
Meta is planning sweeping layoffs that could affect 20% or more of the company, three sources familiar with the matter told Reuters
Learn how to choose the best personal loan lender by evaluating eligibility, interest rates, and borrowing experience.
Discover why pension planning is essential in modern India to ensure financial security and peace during retirement.
The U.S. has launched two investigations under Section 301 of the Trade Act of 1974 against India and other economies to examine practices that may be ‘unreasonable or discriminatory and burden or restrict U.S. commerce’. One probe examines whether countries, including India, are using excess manufacturing capacity to export to the U.S. in a manner that hurts American businesses, while another looks at whether countries have taken ‘sufficient steps’ to prohibit imports of goods produced with forced labour.
NHAI raises annual pass fee to ₹3,075 from April 1, 2026, streamlining toll payments for FASTag users.
The U.S. probes forced labour in global supply chains, scrutinizing China and India's exports, warns the Global Trade Research Initiative.
The Hindu collection of images of the LPG crisis: War lights a kitchen fire
The company, which launched its IPO in 2020, is now listed on the National Stock Exchange as well as the Bombay Stock Exchange.
Explore the Essential Commodities Act's role in addressing India's gas crisis and its impact on various sectors.
Star Health Insurance plans to boost AI-driven claim settlements from 20% to 50% within two years, investing heavily in technology.
The iron ore production has increased by nearly two-thirds since 2015