EU being the India’s largest trading partner, Between April 2012 and May 2015, India received in total of $24.91 billion in FDI equity inflows from EU, Despite the Free Trade Agreement talks with the European Union being in limbo.
• The FDI inflow was $6.23 Billion (2012-2013), $9.06 Billion (2013-2014), $8.20 Billion (2014-2015) and $1.39 Billion (2015-2016(first two months)).
• Free Trade Agreement, officially called the Broad based Investment and Trade Agreement (BTIA).
• India has received an impressive $24 billion in foreign direct investment from the 28-nation bloc over the last three years.
• The two-way commerce between EU and India stood at about USD 99 billion in 2014-15 while it was USD 101.5 billion in 2013-14.
Economy of India:
• The Economy of India is the seventh-largest in the world by nominal GDP and the third-largest by purchasing power parity (PPP).
• India’s economy became the world’s fastest growing major economy from the last quarter of 2014, replacing China’s.
• India also topped World Bank’s growth outlook for the year 2015-16 for the first time with economy grown 7.3% in 2014-15 & expected to grow at 7.5-8.3% in 2015-16.
Free Trade Agreement:
• A free-trade area is the region encompassing a trade bloc whose member countries have signed a free trade agreement (FTA).
• Such agreements involve cooperation between at least two countries to reduce trade barriers import quotas and tariffs and to increase trade of goods and services with each other.
• The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and India.
• The free trade area came into effect on 1 January 2010.
Foreign Direct Investment:
• Foreign Direct Investment in India averaged 1076.20 USD Million from 1995 until 2015.
• Foreign Direct Investment in India is reported by the Reserve Bank of India.
• Foreign Direct Investment in India increased to 3509 USD Million in May from 2721 USD Million in April of 2015.