Will India-EU Trade Deal Help AP And Telangana?

It is already known that India and the European Union had signed historic free trade agreement today that would grant access to several commodities and goods between the two entities. But for now, let us have a look at the end of positive enforcement that Andhra Pradesh and Telangana could be getting from the same.

The proposed India EU trade deal is expected to bring clear economic benefits to states like Andhra Pradesh and Telangana by opening wider access to European markets and attracting new investments.

For Andhra Pradesh, the biggest advantage lies in exports. The state is a major exporter of seafood, especially shrimp, and lower or zero tariffs in the EU will make these products more competitive.

With strong port infrastructure at Visakhapatnam and Kakinada, exporters can scale up shipments to Europe. The deal can also support growth in pharmaceuticals, electronics and food processing, sectors where Andhra Pradesh already has manufacturing capacity. Increased exports are likely to create more jobs in coastal districts and logistics related industries.

Telangana stands to gain mainly from manufacturing and services. The state has a strong base in pharmaceuticals, medical devices, textiles and electronics.

Easier access to the EU market will help Telangana based companies expand exports and move up the value chain. The deal can also encourage European firms to invest in Telangana to use it as a production hub for global markets, leading to technology transfer and skilled employment.

Overall, the India EU trade deal can help both states boost exports, attract foreign investment and generate employment, provided local industries adapt to EU quality and compliance standards.