Explained: This article explains the political background, key decisions, and possible outcomes related to Explained : Piyush Goyal Hits Back At Congress Criticism Of India-EU Free Trade Deal, Calls It ‘Win-Win’ Pact and Its Impact and why it matters right now.
Commerce and Industry Minister Piyush Goyal on Wednesday (28 January) strongly countered Congress criticism of the India-European Union free trade agreement, asserting the landmark deal is a mutually beneficial pact that will fuel India’s economic growth.
Goyal said the deal is not a zero-sum pact but a mutually beneficial one that will fuel India’s economic growth and open up large opportunities for businesses and citizens.
The opposition party had raised objections after the agreement was finalised on 27 January, questioning the Modi government’s handling of negotiations.
Congress flagged concerns over the absence of an exemption for Indian aluminium and steel producers from the EU’s Carbon Border Adjustment Mechanism, and also criticised the reduction or relief of tariffs on more than 96 per cent of the bloc’s exports to India.
India’s aluminium and steel exports to the EU have already fallen from $7 billion to $5 billion and are only expected to fall further beginning this year due to the enforcement of the CBAM since 1 January 2026.
In a detailed rebuttal posted on social media, Goyal said it puzzles him that while the global community describes the agreement as the ‘mother of all deals’, Congress General Secretary Jairam Ramesh has labelled it ‘hugely hyped’.
“Is this a story of “Sour grapes”? It is interesting to see that those who could not take decisions because they had no connect with the people on the ground are today making a virtue of not doing anything. Our people have paid immense costs for this lost opportunity. Our country has lost valuable jobs, income and growth and people have rightly punished this inaction many times,” Goyal said.
Goyal asked whether the combined GDP of $25 trillion, combined global trade of $11 trillion and common market of 2 billion people, and $33 billion of India’s labour-intensive exports going to zero duty on day one constitutes hype, adding that both economies are largely complementary.
“It is not a zero sum deal but a win-win deal which will power our economic growth and create plethora of opportunities for our businesses and people,” he added.
The minister explained that easing norms for completely knocked down imports would encourage European original equipment manufacturers to set up assembly units in India.
This would gradually move foreign companies from importing vehicles to assembling them locally and eventually towards full localisation through domestic supply chains.
The agreement, expected to take effect by the end of 2026, will see India reduce or eliminate tariffs for 96.6 per cent of EU exports, while Brussels will reciprocate with similar reductions in phases that eventually cover nearly 99 per cent of India’s shipments by trade value.
In a post on X, Goyal said he hopes his ‘friend’ will shed this negative and pessimistic approach, which is unable to see India’s aspirational people raring to go out and do business with the world.
The trade pact, finalised after nearly 20 years of negotiations, is being described as India’s largest and most comprehensive trade agreement.
The EU-India trade deal could create six or seven million jobs in the textile sector alone, with the sector being the second-biggest employer in India after agriculture.