IMF Backs India–EU Free Trade Agreement

The International Monetary Fund (IMF) has welcomed the proposed Free Trade Agreement (FTA) between India and the European Union (EU). It said the agreement is a positive step that shows both sides want to strengthen their economic ties, even at a time when global trade is facing many challenges.

During a recent briefing on emerging market economies, IMF Economic Counsellor and Director of Research Pierre-Olivier Gourinchas spoke about the importance of such trade deals. He said that many countries are now looking for practical ways to improve trade and cooperation despite growing global tensions and uncertainty.

He explained that the past year has been difficult for global trade, with supply chain problems, economic slowdowns and geopolitical issues affecting many nations. In this situation, agreements like the India-EU FTA send a strong message that countries are still willing to work together.

Gourinchas said it is important that nations continue to deepen trade relations wherever possible. He added that free trade agreements can provide stability and clear policies, which help businesses plan better and invest with confidence.

The IMF believes that stronger trade partnerships can support economic growth, create jobs and benefit both countries involved.

The India-EU FTA is expected to boost trade, increase investments and open new opportunities for businesses on both sides.