NEW DELHI: As India and the European Union resume negotiations for their long-pending Free Trade Agreement (FTA) in Brussels on Monday, both sides have acknowledged that while progress has been made, several critical issues remain unresolved.
EU ambassador to India Hervé Delphin said the negotiating teams were “working hard to deliver a mutually beneficial deal,” though talks continue to be “challenging.” He highlighted the growing economic interdependence between the two partners, noting that EU companies in India generated €186 billion in turnover in 2024, roughly 5% of India’s GDP, and exported goods worth €23.5 billion, accounting for about 6% of India’s total exports.
Delphin said the EU and India are also advancing discussions on an Investment Protection Agreement (IPA) aimed at creating a predictable, secure, and transparent framework for investors on both sides.
“While certain differences must still be resolved, both the EU and India agree that the right of states to regulate must be explicitly safeguarded and that tribunals must have clear guidance on interpreting investment protection standards,” he said. “These shared principles should guide us towards a successful outcome.”
Reflecting on last month’s 13th round of negotiations, which ended without a breakthrough, the ambassador said the EU remains ready to conclude a “meaningful package.”
“We look forward to the next round and to further negotiations that bring us closer to a mutually beneficial deal,” Delphin noted.
He emphasized that a robust FTA could open new opportunities for businesses, significantly boost bilateral trade and investment, and strengthen supply chains amid global uncertainty.
“While some countries are raising tariffs and closing markets, the FTA can help diversify trade and hedge against risks,” he said.
The EU is currently India’s largest trading partner, with bilateral trade in goods reaching €120 billion, surpassing both the US and China. When services are included, total trade amounts to €180 billion.
“It’s an impressive figure,” Delphin said, “but considering that the EU and India are the world’s second and fourth-largest economies, there’s enormous untapped potential that this FTA can unlock.”
