The EU and India concluded negotiations on the 27th of January for a free trade agreement that has the potential to become one of the most strategic trade deals of our time. At a moment of global fragmentation, deeper EU–India cooperation is both good economics and smart geopolitics.
📌 The agreement is the largest such deal ever concluded between the EU and India, creating new opportunities for European businesses and consumers, and establishing a market of more than 2 billion people. SMEs will especially benefit from the tariff reductions, removal of regulatory barriers and predictability promised by the agreement.
📌 Rising global trade tensions, concerns over China’s dominance in critical supply chains, and an unpredictable Transatlantic environment have made the case for diversification unmistakable. With the United States being an unreliable partner under the Trump administration, Europe has the opportunity to form new partnerships.
📌 At the same time, we must be clear-eyed: India’s energy dependence on Russia and its broader geopolitical positioning have implications for European security. That is why this agreement must be ambitious, transparent and rules-based with clear safeguards, monitoring mechanisms and reversible tools to manage strategic risks.
This agreement must be signed and implemented without delay. Europe cannot afford a repeat of the Mercosur failure, where the political hesitation and short-sighted opportunism of a small majority of the European Parliament undermined a strategically important partnership. ‼️
A strong, implemented EU-India FTA will strengthen Europe’s competitiveness, enhance our strategic autonomy and send a clear signal: Europe remains committed to liberal trade and to building global partnerships in an uncertain world.
