India, European Union agree on Most Favoured Nation status for 5 years, shows draft trade deal

India and the European Union (EU) have reached a preliminary agreement to grant each other Most Favoured Nation (MFN) status for a duration of five years, as revealed in a draft of their upcoming trade deal. This mutual recognition is expected to facilitate enhanced trade relations between the two entities, allowing for lower tariffs and improved market access. The agreement underscores the growing economic ties between India and the EU, which have been strengthening in recent years through various dialogues and partnerships. Both parties aim to bolster cooperation in key sectors such as technology, agriculture, and services, thereby fostering an environment conducive to investment and economic growth. The MFN status is a critical element in international trade agreements, ensuring that both India and the EU can benefit from preferential treatment in each other's markets. As negotiations progress, stakeholders from both regions await further developments that could lead to a formal agreement, potentially shaking up trade dynamics not just regionally but globally.