The International Monetary Fund (IMF) has welcomed the recently announced Free Trade Agreement (FTA) between India and the European Union (EU), calling it a “positive development” in the context of the current global economic climate. The IMF highlighted that such agreements demonstrate countries’ commitment to strengthening economic integration, even as global trade faces rising tensions and uncertainty.
Speaking at a briefing focused on emerging market economies, Pierre-Olivier Gourinchas, IMF Economic Counsellor and Director of Research, emphasized that recent trade agreements illustrate governments’ pragmatic approach to expanding trade links. He noted that despite a challenging year for global commerce, nations are actively seeking opportunities to deepen economic cooperation wherever feasible.
Gourinchas further observed that in today’s volatile international environment, pursuing trade agreements can provide much-needed policy certainty, offering stability for businesses and investors. According to him, the India-EU FTA is an example of how countries are continuing to foster stronger trade relationships, signaling a constructive step toward global economic collaboration even amid uncertainty.
