As the world navigates through shifting trade patterns, geopolitical conflicts, and supply chain disruptions, the proposed India–EU FTA stands out as a framework for equitable growth and strategic collaboration, promising not only to boost trade volumes but also to deepen technological, investment, and institutional linkages between the two dynamic economies, a media report said.
The push toward an India–EU FTA is not merely economic, it is deeply strategic. With the European Union facing slow economic recovery, rising protectionism in the US, and dependence on limited supply chains, India emerges as a natural and reliable partner offering growth, stability, and diversification, according to a report by Greece’s leading digital media outlet NewsBomb.
Conversely, for India, the agreement will enhance competitiveness, attract quality foreign investment, and provide greater access to high-end technologies and markets. Amid global uncertainties such as the Russia–Ukraine conflict, energy price volatility, and changing security alliances, the FTA will serve as a stabilising force, promoting mutual resilience and long-term strategic alignment between the two regions.
The European Union has emerged as one of India’s most strong trade partners, with bilateral trade in goods expanding by nearly 36 per cent over the past five years from $90 billion in 2020–21 to $136 billion in 2024–25. Notably, India’s trade with the EU has grown at a faster pace than its trade with the United States, reflecting Europe’s increasing importance in India’s external sector strategy, as per the report.
India’s exports to the European Union have undergone a remarkable transformation in recent years, reflecting both the strength of traditional industries and the rise of new-age sectors. The top twenty export items account for over 83 per cent of total exports, combining labour-intensive products such as textiles, footwear, and jewellery with high-value exports including electronics, engineering goods, machinery, pharmaceuticals, and organic chemicals, it added.
It also highlights that the EU is a crucial source of advanced industrial inputs and high-technology products for India. The major imports include machinery, nuclear reactors, and boilers, essential for India’s manufacturing and energy industries. Electrical machinery and electronics are supporting India’s growing technology and renewable energy sectors. These imports strengthen India’s industrial capabilities and align with national priorities such as Make in India and Atmanirbhar Bharat by integrating global supply chains with local production.
Investment relations between India and the European Union are equally impressive. The EU has invested over $117 billion in India, making it one of the largest foreign investors in the country. In return, Indian companies have invested around $40 billion in Europe, particularly in sectors such as pharmaceuticals, IT services, and renewable energy.
Substantial progress in the trade talks has already been achieved in areas such as customs facilitation, intellectual property rights, transparency, and dispute resolution. Both sides are now determined to conclude the agreement by December 2025, setting the stage for one of the most comprehensive and forward-looking trade partnerships in India’s modern economic history, the report added.
Picture Courtesy: IANS
