India and the EU finalize negotiations on financial services in the India-EU Free Trade Agreement, enhancing market access and cooperation. Total services trade reached $83bn in 2024, with India exporting $700m and importing $600m in financial services to and from the EU. The annex includes commitments on electronic payments, cross-border transactions, and fintech cooperation.

The agreement aims to address discriminatory treatment in credit assessment and market access for Indian financial institutions in the EU. Specific commitments cover banking, insurance, and other financial services segments. India offers 100% FDI in insurance and a 74% FDI limit in banking. The framework allows for up to 15 bank branches over four years.

India’s Ministry of Finance highlights the FTA’s emphasis on deepening economic ties and mutual opportunities in the financial services landscape. The agreement provides enhanced market access, regulatory clarity, and cooperative frameworks for financial institutions and service providers from both countries. India and the EU are committed to harnessing shared benefits in the evolving financial services industry.

Read more at Yahoo Finance: India, EU close FTA talks on financial services, digital payments