EU Ambassador to India Hervé Delphin said the proposed India-EU Free Trade Agreement offers significant opportunities to deepen economic integration and technology cooperation.
This push for liberalised investment rules comes as both regions seek to secure supply chains and increase trade volumes. A finalized agreement would reshape the economic relationship between two of the world's largest markets.
Delphin said Thursday that there is a need for an investment-liberalisation chapter within the FTA [1]. He also called for the early conclusion of a separate investment-protection pact [2]. These measures are intended to create a more stable environment for businesses to operate across borders, reducing barriers to entry for European firms in India and vice versa [1].
The scale of the potential agreement is vast. The India-EU FTA would cover $11 trillion in trade [4]. According to data, over 99% of Indian goods exported to the EU would receive tariff cuts [5], while 97% of EU goods exported to India would see similar reductions [6].
Beyond tariffs, the diplomatic effort emphasizes the combined demographic and economic weight of the two entities. The combined population of India and the EU is approximately two billion people [7]. Together, they account for roughly 25% of the global GDP [8].
Delphin said that deepening these ties would not only boost trade but also foster critical cooperation in technology [1]. By establishing clear rules for investment protection and liberalisation, the EU aims to ensure that the transition to a free trade regime is supported by legal safeguards for investors [3].
“The India-EU FTA would cover $11 trillion in trade”
The EU's insistence on an investment-protection pact and liberalisation chapter indicates that tariff reductions alone are insufficient for European strategic interests. By seeking legal guarantees and reduced regulatory barriers, the EU is attempting to mitigate the risks associated with the Indian market's complexity, ensuring that the $11 trillion trade landscape is supported by institutional stability.
