EU-India FTA: 22-Year Journey Reveals India's Evolving Trade Strategy
Business
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Moneycontrol•27-01-2026, 11:42
EU-India FTA: 22-Year Journey Reveals India's Evolving Trade Strategy
- •The proposed EU-India Free Trade Agreement (FTA) has been under negotiation for 22 years, reflecting a complex and evolving journey.
- •Initial talks under BTIA in 2007 aimed for broad coverage but collapsed by 2013 due to disagreements on tariffs (automobiles, wines, spirits), intellectual property, and market access, particularly sensitive agricultural sectors.
- •Global shifts like the eurozone crisis, Brexit, and Trump's trade policies between 2013-2021 led India to recalibrate its trade approach, prioritizing national interest over large blocs (e.g., opting out of RCEP).
- •Negotiations resumed in 2022, driven by mutual necessity and geopolitics, splitting into three tracks: FTA, investment protection, and geographical indications, focusing on new concerns like climate regulation and sustainability.
- •The FTA's significance lies in regulatory predictability and long-term market access for Indian businesses, though immediate gains may be limited by rising green compliance costs and persistent sensitive issues like dairy and public procurement.
Why It Matters: The 22-year EU-India FTA journey highlights India's adaptive trade strategy shaped by domestic politics and global shifts.
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