Jaishankar highlights FTA and future India-EU cooperation.
External Affairs Minister S. Jaishankar on Friday described the recently signed Free Trade Agreement (FTA) between India and the European Union as a “transformative” milestone, underlining its potential to reshape bilateral relations. Addressing the inaugural India-EU Forum, he emphasised that the agreement marks a new phase of strategic and economic partnership.
FTA a Turning Point in Ties
Speaking at the forum, Jaishankar said the India-EU FTA has emerged as a “game-changing development” for both sides. He highlighted that the agreement will strengthen cooperation not only in trade and investment but also in emerging strategic sectors.
“Addressed the inaugural India-EU Forum this morning. Highlighted that the FTA has been a game-changing development for our partnership,” Jaishankar posted on X, adding that the platform would help create greater convergence between India and the EU.
He also pointed to the scope for deeper collaboration in areas such as security, defence, climate action, digital technology, and talent mobility.
Leaders Welcome Landmark Agreement
The FTA was formally concluded on January 27, when Prime Minister Narendra Modi joined Antonio Costa and Ursula von der Leyen in welcoming the deal.
In a joint statement issued after the 16th India-EU Summit, the leaders described the agreement as “historic” and said it would significantly enhance trade, investment, and supply chain resilience.
“This deal will drive shared prosperity, strengthen diversified supply chains, and support sustainable and inclusive growth,” the statement noted.
Focus on Global Trade Reforms
The leaders also reaffirmed their commitment to strengthening the global trading system. They stressed the central role of the World Trade Organization in trade governance and called for comprehensive reforms to make it more responsive to modern economic challenges.
With growing geopolitical and economic uncertainties, both sides agreed that closer India-EU ties are essential for boosting growth, job creation, green transition, and industrial development.
Expanding Economic Engagement
Beyond the FTA, India and the EU have committed to expanding their economic engagement through additional agreements. The joint statement said both sides would work towards finalising an Investment Protection Agreement (IPA) and an Agreement on Geographical Indications (GIs) at the earliest.
They also agreed to scale up bilateral investments and promote private sector participation through initiatives such as “Blue Valleys,” aimed at strengthening key value chains.
These steps are expected to encourage European companies to expand operations in India and enable Indian firms to gain wider access to European markets.
Strategic and Technological Cooperation
Jaishankar highlighted that the partnership now extends beyond commerce. Cooperation in defence manufacturing, cybersecurity, renewable energy, digital innovation, and research and development is gaining momentum.
Experts believe that enhanced collaboration in technology and talent flows could position India and the EU as major partners in shaping future global standards in artificial intelligence, green technologies, and advanced manufacturing.
Significance for India and Europe
The India-EU FTA is among the most comprehensive trade agreements signed by India in recent years. It is expected to reduce tariffs, ease regulatory barriers, and improve market access across multiple sectors, including automobiles, pharmaceuticals, agriculture, textiles, and services.
For the EU, India represents one of the fastest-growing major economies and a key strategic partner in the Indo-Pacific. For India, the EU remains a crucial source of investment, technology, and high-value exports.
Economists say the agreement could substantially boost bilateral trade volumes over the next decade while reinforcing economic resilience on both sides.
Our Final Thoughts
S. Jaishankar’s remarks at the India-EU Forum underscore the growing strategic depth of India’s partnership with Europe. The FTA has laid a strong foundation for expanded trade, investment, and cooperation in emerging sectors. With both sides committed to further agreements and reforms, the India-EU relationship is poised to become one of the most influential economic partnerships of the coming decade.