The party cites projections by the EU itself, which estimates that its exports to India will grow by over 107 per cent within a few years of the agreement coming into force
NEW DELHI – The Communist Party of India (Marxist) on Tuesday strongly opposed the India–European Union Free Trade Agreement (FTA), terming it a “wholesale surrender of India’s economic interests” to European capital at a time when the United States has reportedly refused to enter into a comprehensive trade agreement with India over market access and regulatory differences.
In a sharply-worded statement, the CPI(M) said the FTA, finalised after prolonged negotiations, would seriously undermine the domestic industry, employment, and livelihoods of farmers and workers, while disproportionately benefiting multinational corporations and affluent consumers.
The Left party pointed out that under the agreement, India has committed to eliminating or drastically reducing tariffs on over 90 per cent of goods imported from the European Union. Key sectors facing steep tariff cuts include automobiles, where duties will be reduced from 110 per cent to 40 per cent; iron and steel, from 22 per cent to zero; pharmaceuticals, from 11 per cent to zero; wines and spirits, from a prohibitive 150 per cent to 40 per cent; processed foods, from 50 per cent to zero; and sheep meat, from 33 per cent to zero.
“These reductions will severely and adversely affect India’s automobile, pharmaceutical, machinery, iron and steel, and food processing industries,” the CPI(M) said, warning that domestic manufacturers—many of whom operate on thin margins—would be unable to compete with heavily subsidised and technologically advanced European producers. The party cited projections by the EU itself, which estimates that its exports to India will grow by over 107 per cent within a few years of the agreement coming into force.
According to the CPI(M), the surge in imports, particularly in automobiles, electrical machinery, and high-value consumer goods, will have a direct negative impact on employment in India’s manufacturing sector, already reeling from job losses, informalisation, and stagnant wages. “The reduced cost of imported cars and wines will only benefit the affluent sections, while workers, small manufacturers, and farmers will bear the brunt of job losses and income erosion,” the statement said.
The party also linked the agreement to broader geopolitical and trade developments, noting that the United States has recently declined to move forward with a comprehensive trade agreement with India. Reports suggest that Washington has raised objections over tariff structures, agricultural market access, intellectual property rights, and data regulations, reflecting a lack of consensus between the two sides. “Instead of re-evaluating its trade strategy in light of such refusals, the BJP-led government is rushing into FTAs that compromise India’s policy space and economic sovereignty,” the CPI(M) alleged.
Another major concern flagged by the Left party is the agreement’s role in strengthening the India–Middle East–Europe Economic Corridor (IMEC), which envisages new trade and transport routes linking India to Europe via West Asia. The CPI(M) pointed out that the corridor designates the Israeli port of Haifa as a key transit hub.
“At a time when large sections of the international community are demanding that Israel be held accountable for its genocidal aggression in Gaza and be declared an apartheid state, the Indian government is choosing to deepen economic and strategic ties with Israel through this FTA and the IMEC framework,” the statement said. The party termed this move “deplorable” and contrary to India’s stated commitment to justice, international law, and the rights of the Palestinian people.
The CPI(M) accused the BJP-led Union government of consistently sacrificing the interests of farmers and workers in its pursuit of free trade agreements. It recalled earlier FTAs with countries and blocs in Asia and elsewhere, which, it said, had led to import surges, distress in agriculture, and the weakening of domestic manufacturing without delivering the promised export gains.
“The government’s track record shows that these FTAs are negotiated in secrecy, without adequate consultation with states, farmers’ organisations, trade unions, or Parliament,” the party said. It demanded that the full text of the India-EU FTA be placed before the upcoming Budget Session of Parliament and subjected to a thorough and transparent discussion.
Calling for a complete reorientation of India’s trade policy, the CPI(M) said all “anti-people” FTAs signed by the present government must be reviewed and, where necessary, rescinded. “India’s trade engagements must prioritise employment generation, food security, industrial self-reliance, and the livelihoods of farmers and workers, rather than serving the interests of multinational corporations and foreign capital,” the statement asserted.
The party urged opposition parties, trade unions, farmers’ organisations, and civil society groups to oppose the agreement and build pressure on the government to protect national economic interests and democratic accountability in trade policy-making.
