Key Takeaways
- India and the EU restart FTA talks after a 9-year pause.
- The deal aims to boost trade, investment, and reduce reliance on China.
- Negotiations will also cover investment protection and geographical indications.
India and the European Union have officially restarted negotiations for a major free trade agreement, marking a significant step after talks stalled nearly a decade ago. This potential deal, often called the ‘mother of all deals’, is set to reshape economic and strategic ties between the two giants.
What’s on the Table in the India-EU FTA?
The comprehensive talks, which broke down in 2013 over market access and tariffs, are now broader in scope. Negotiators will tackle trade in goods and services, investment rules, intellectual property rights, and sustainable development clauses.
A successful agreement promises major gains. The EU is India’s largest trading partner and top source of foreign direct investment, while India ranks as the EU’s tenth-largest partner. The FTA is projected to increase bilateral trade, spur job creation, and fuel economic growth for both economies.
The Strategic Context: Beyond Trade
The revival of talks is driven by shared strategic goals. Both India and the EU are actively seeking to diversify supply chains and reduce economic dependence on China. The EU is particularly focused on strengthening its strategic partnership with India in the crucial Indo-Pacific region.
While negotiations will be complex due to existing differences, both sides have publicly committed to finding a mutually beneficial outcome.
Broader Cooperation on the Horizon
Beyond the core FTA, two parallel agreements are also in discussion:
- An Investment Protection Agreement to secure investments.
- A Geographical Indications (GI) agreement to protect iconic products.
Cooperation is also expected to expand into new areas like climate action, the digital economy, and connectivity projects. The resumption of dialogue signals a strong, renewed commitment from both Brussels and New Delhi to deepen a multifaceted partnership.
