India Pushes for Swift Free Trade Agreement with European Union

FTA seen as key to diversifying exports amid U.S. tariff challenges

Brussels/New Delhi, Sept 4:

External Affairs Minister S. Jaishankar has reiterated India’s determination to fast-track the long-pending India–EU Free Trade Agreement (FTA), calling it a “strategic necessity” in the face of shifting global trade alliances.

During high-level meetings in Brussels, Jaishankar underscored that a comprehensive FTA could unlock vast opportunities for Indian exporters in pharmaceuticals, IT services, textiles, and agri-products. “Europe remains one of India’s largest trading partners, and a swift FTA will provide stability, predictability, and access at a time when global supply chains are being disrupted,” he said.

The urgency comes against the backdrop of heightened India–U.S. trade tensions, where new U.S. tariffs have impacted over 55% of Indian exports to the American market. Former RBI Governor Urjit Patel recently warned that such tariffs could create long-term uncertainty for Indian exporters, particularly in engineering and manufacturing.

For the EU, India’s young workforce and rapidly growing middle class represent a lucrative consumer market. For India, the deal is critical to diversifying away from dependence on the U.S. and China.

Industry bodies like FICCI and CII have welcomed the government’s push, urging negotiators to ensure favorable terms in digital services, intellectual property, and climate-related trade standards.