Abhijit Banerjee Says India Less Dependent on US After India-EU Deal
Nobel laureate economist Abhijit Banerjee said the recently concluded India-European Union free trade agreement (FTA) signals that India does not depend on the United States as much as Washington might assume. He described the pact as a strategic alignment that broadens India’s global economic options.
Strategic Message of the FTA
Banerjee said the India-EU trade pact — which follows years of negotiations and was hailed as a major breakthrough — sends a message that India is capable of engaging on multiple global fronts. He suggested that expanding ties with large economies such as the EU reduces the perception that India’s economic future is tied primarily to the United States.
India’s Global Trade Position
The economist’s comments reflect a broader view among some analysts that India’s growing economic weight and diversified trade relationships — including with Europe and other partners — give it leverage in global affairs. The FTA is expected to reduce tariffs on many traded goods and expand access to a market of nearly two billion consumers.
Broader Geopolitical Context
Banerjee’s remarks come amid shifting global trade dynamics, where India is pursuing deeper ties with multiple major partners. While the United States remains an important partner, the new agreement with the EU underscores India’s efforts to diversify its economic and diplomatic engagements.
