EU–India FTA Signals Shift Towards Multipolar World Order, Says Global Report
New Delhi: The recently concluded free trade agreement between India and the European Union is being described by international observers as a landmark moment in the evolving global order.
According to a recent analysis published in The Guardian, the EU–India FTA — touted as the “mother of all deals” — reflects the emerging contours of a post-US world marked by strategic autonomy, shifting alliances and renewed commitment to multilateralism.
The agreement was announced by European Commission President Ursula von der Leyen, European Council President Antonio Costa, and Prime Minister Narendra Modi. The deal is expected to bring together nearly two billion consumers and account for roughly a quarter of the world’s GDP.
Writing in the report, Ravinder Kaur, professor of Asian studies at the University of Copenhagen, said the broad scope of the partnership suggests growing convergence between India and the EU on issues ranging from multilateral institutions to defence cooperation, research collaboration, mobility, connectivity and engagement in the Indo-Pacific.
She argued that as the United States appears increasingly focused on the western hemisphere, the Indo-Pacific region — once central to US strategic engagement — is becoming more open to deeper collaboration with the EU.
The report also highlights that Brussels recently concluded a trade agreement with the Mercosur bloc in South America, while several other deals are under negotiation. India, too, has signed trade agreements in recent months with the United Kingdom and New Zealand, underscoring a broader realignment in global trade partnerships.
While ratification processes may face delays or political hurdles, observers say the direction of travel is clear. The concept of multipolarity — where economic and political influence is distributed among several global powers rather than dominated by one — appears to be gaining ground.
Separately, Farwa Aamer, director of South Asia Initiatives at the Asia Society Policy Institute in New York, suggested that the EU–India agreement may also have influenced the pace of trade negotiations between India and the United States.
She noted that although India–US trade talks had been ongoing, the timing of the EU deal could have provided additional impetus for Washington to accelerate its own discussions with New Delhi.
The EU–India FTA, therefore, is not only a bilateral economic arrangement but also a signal of shifting global alignments, as countries seek diversified partnerships amid geopolitical uncertainty.
Our Thoughts
The EU–India free trade agreement represents more than expanded market access; it reflects deeper structural changes in global geopolitics. As traditional power centres recalibrate their priorities, emerging economies and regional blocs are actively shaping a multipolar framework built on strategic autonomy and diversified alliances. Whether this transformation leads to a more balanced and stable global order will depend on implementation, trust-building and sustained diplomatic engagement. For now, the EU–India partnership stands as one of the clearest indicators of this evolving shift.