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India-EU FTA to be signed on December 16

admin — Wed, 23 Sep 2026 16:55:00 +0000

The Free Trade Agreement (FTA) between India and the European Union (EU) will be signed on December 16, 2026, two diplomatic sources have separately confirmed to The Hindu.

This will be part of Prime Minister Narendra Modi’s upcoming back-to-back trips in December to Canada, the U.S., and Belgium, where three separate FTAs are currently either being negotiated or in the process of approval.

Further, as the EU FTA has received “majority approval” in Europe, it will not require separate ratification by each EU country once the European Council gives its go-ahead.

The next step, after the December signing, will be passage in the European Parliament, which will take another one to two months, paving the way for a roll-out in “early 2027”.

Also Read | India-EU FTA moves one step closer to reality as European Commission moves to get it signed

Smooth sailing for EU deal

“The most recent development was the European Commission finalising the text of the deal and sending it to the European Council,” a diplomatic source told The Hindu. “The signing is scheduled for December 16, after which it will go to the European Parliament, which will add just about 1-2 months to the process.”

A second source confirmed the date, adding that it would take place in Brussels in the presence of Mr. Modi.

Negotiations on the India-EU FTA, dubbed the “mother of all deals” by leaders on both sides, restarted in June 2022 after a long hiatus and were concluded in January 2026.

“The deal has majority support in Europe, and so it will not need to be individually ratified in each EU country,” the first source added. A reason for this support is that the two sides agreed to leave out contentious issues from the deal and not make “the best the enemy of the good”.

Also Read | Expect EU to sign FTA and India-Canada negotiations to be completed by year-end, govt says

Canada calling

Mr. Modi is expected to travel to Canada first, probably around December 12, prior to the G-20 Summit in Miami, to be hosted by U.S. President Donald Trump. Confirming the visit, Canadian Prime Minister Mark Carney said trade negotiations had made “good progress”, and that India is an “exceptionally important relationship on many levels” including people to people, security trade, and economic ties.

“Our commitment to each other, PM Modi and myself last year at the G20 (in Canada) was to look to conclude negotiations by G20 of this year (in the U.S.). That’s the middle of December, 14-15 December,” Mr. Carney told journalists at a briefing in New York on the sidelines of the UN General Assembly on Tuesday.

In an interview with Canada’s Globe and Mail newspaper, India’s High Commissioner to Canada, Dinesh Patnaik, also confirmed the visit, adding that he expected the India-Canada FTA to be “completed by November” and Mr. Modi would be in Canada in December to sign the deal.

Commerce Secretary Rajesh Agrawal has separately confirmed that this is largely the timeline India was operating under as well.

Also Read | 100% U.S. tariff threat: Can India’s new trade deals reduce its dependence on America?

On to the U.S.

Mr. Modi is then expected to attend the G20 meeting in Miami, where the India-U.S. Interim Agreement on trade and a larger Bilateral Trade Agreement (BTA) will also be on the agenda. Both agreements have already missed several deadlines.

Jointly announced in February 2025 by Mr. Modi and Mr. Trump, the BTA was supposed to have been completed by “Fall 2025”, but was then scuppered due to the 50% reciprocal and penal tariffs the U.S. imposed on imports from India in July-August 2025.

In February 2026, the two countries issued a joint statement in which they committed to an Interim Agreement on trade that officials on both sides said would be completed by March-April 2026. They also committed to continue working on a BTA.

Neither deal has so far come to pass, and now faces further strain due to the new law the U.S. has enacted that could see tariffs of up to 100% being levied on India on the basis of its import of Russian crude oil and natural gas.

Published – September 24, 2026 01:00 am IST

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100% U.S. tariff threat: Can India’s new trade deals reduce its dependence on America?

admin — Mon, 21 Sep 2026 14:18:00 +0000

By Areena Arora and Gandla Sneha

Published September 21, 2026

Prime Minister Narendra Modi with U.S. President Donald Trump in New Delhi on Feb. 25, 2020. (PTI Photo)

As the Trump administration has repeatedly changed tariffs on Indian goods, New Delhi has been signing trade agreements at a rapid pace. But can these new markets meaningfully reduce India’s dependence on the U.S. as it’s faced with 100% tariffs?

How U.S. tariffs on Indian goods have changed since 2025

The U.S. House of Representatives has passed legislation giving U.S. President Donald Trump broad
powers to impose sanctions on Russia and tariffs of up to 100% on countries that buy Russian oil and
gas, a measure that could once again put Indian exports in the firing line.

The development comes after more than a year of upheaval in India-U.S. trade. Since Trump returned
to the White House, Indian exporters have faced repeated changes in tariff rates, the products
covered and the laws used to impose them. The uncertainty matters because the U.S. has only become
more important to India’s exporters. This bill comes amidst New Delhi and Washington negotiating a
preliminary trade deal.

The Trump administration had announced an additional 25% tariff, on top of an existing 25% tariff on
India in July 2025, for the purchase of Russian oil. The share of Russian crude oil in Indian oil
imports fell to its lowest level in two years in December 2025, but energy markets have been under
additional pressure owing to the U.S.-Iran conflict and New Delhi’s import of Russian oil hit an
11-month high in April this year. However, the U.S. Treasury paused sanctions for oil shipments that
were in transit before March 11, as supplies were hit following the start of the conflict in West
Asia on February 28.

Russia accounted for more than 51% of India’s oil imports in July, an all-time high, up from just a
little less than 50% in the previous month, the latest official data shows. An analysis of Commerce
and Industry Ministry data shows India imported 110.4 lakh tonnes of Russia oil in July, the latest
month for which data is available.

U.S. is India’s most important trading partner, as evident in its imports from India. In 2025, the
U.S. bought about $92 billion worth of Indian merchandise, almost four times the $24 billion it
bought in 2010. Its share of India’s merchandise exports nearly doubled over the period.

Even as the Trump administration has repeatedly turned to tariffs, New Delhi has been rapidly
expanding its network of trade agreements, opening up markets across Europe, West Asia and
elsewhere. But can these new markets meaningfully reduce India’s dependence on the U.S.?

How the U.S. tariff regime has been changing

India is not alone in facing U.S. tariffs. On April 2, 2025, the Trump administration announced a
10% additional tariff on imports from almost all trading partners, along with higher
country-specific rates for dozens of economies. India was assigned a 26% rate, while other major
trading partners including the European Union, Japan and South Korea were also placed above the 10%
baseline. The higher country-specific tariffs were suspended days later for most countries, leaving
the 10% baseline in place. China was treated separately and faced substantially higher rates during
the ensuing tariff dispute.

U.S. Section 301 tariffs, as of July 2026

Tariff rates vary by country. For some, the rate is an additional duty on top of existing tariffs, while for others it is a total rate that includes existing duties.

10% + existing tariff(additional duty)
12.5% + existing tariff(additional duty)
10% total(includes existing duties)
12.5% total(includes existing duties)
Not covered by this action

Loading tariff map…

In July 2025, the U.S. announced a 25% rate for India, which it then hiked to 50% as a penalty for
importing Russian oil. The additional Russian-oil tariff was removed in February 2026, when India
and the U.S. announced a framework for an interim trade agreement.

The tariff regime changed again in 2026. After the U.S. Supreme Court struck down the use of
emergency economic powers for the reciprocal tariffs, the administration turned to other provisions
of U.S. trade law. A temporary 10% import surcharge under Section 122 took effect on February 24 and
remained in force until July 24.

In July, the U.S. Trade Representative imposed new Section 301 tariffs on 60 economies following an
investigation into forced-labour import restrictions. The rates varied by country, from 10% for
India, the UK and several others to 12.5% for many of the economies covered.

Since July, around 55% of India’s exports to the U.S. have faced this additional 10% Section 301
duty. The remaining 45% are outside its scope, including generic pharmaceuticals, smartphones and
products already subject to separate Section 232 tariffs such as steel, aluminium and auto parts.

These repeated changes have made it difficult for exporters to plan around fluctuations in the U.S.
market, said Biswajit Dhar, an economist and former professor at Jawaharlal Nehru University.

“With regular changes in U.S. tariff rates, Indian exporters face serious uncertainties over their
expected earnings in the world’s largest economy,” he said.

Indian Liquified Petroleum Gas carrier Shivalik as it arrives at the Mundra Port in Gujarat, India. (REUTERS/Amith Dave)

Meanwhile, India’s dependence on the U.S. has grown

Over the years, the U.S. has accounted for a growing share of India’s exports. What Indian exporters
sell to American buyers has also changed.

Two decades ago, consumer goods made up more than half of India’s exports to the U.S., while capital
goods accounted for just 11.4%. By 2025, the share of consumer goods had fallen to 40.9%, while
capital goods had risen to 28.6%.

The composition within those broad categories has changed too. In 2005, precious stones accounted
for 24.7% of India’s exports to the U.S. and textiles and apparel for 21.3%. By 2025, their shares
had fallen to 7.3% and 8.3%, respectively.

Source: International Trade Center trade map. Shares are each product group’s value divided by total merchandise exports to the U.S. that year.

Electrical machinery moved in the opposite direction. It accounted for just 2.6% of India’s exports
to the U.S. in 2005, but by 2025 had become the largest category, making up 28% of the export
basket. Pharmaceuticals also increased from 1.6% to 10.4% over the period.

Some of these industries are also highly dependent on the U.S. as a destination. In 2025, 48.1% of
all electrical machinery exported by India went to the U.S. The corresponding share was 55% for
carpets and 37.3% for pharmaceuticals. For some smaller categories, the dependence was even greater.
The U.S. accounted for 77.3% of prepared meat and fish exports in 2025.

This makes changes in U.S. market access particularly important for Indian exporters. For several
industries, the U.S. accounts for a substantial share of their total overseas sales.

Union Minister of Electronics and Information Technology Ashwini Vaishnaw during the inauguration of a manufacturing unit for tempered glass used in mobile phones, in Noida, Uttar Pradesh, on Aug. 30, 2025. (PTI Photo)

India’s attempt at diversifying its trade partnerships

India has also accelerated its push for new trade agreements. Since 2021, India has concluded or
announced nine trade agreements covering 38 countries.

The Comprehensive Economic Partnership Agreement with the UAE came into force in 2022, followed by
the Economic Cooperation and Trade Agreement with Australia later that year. India signed an
agreement with the four-country European Free Trade Association in 2024. Deals with the UK and Oman
followed, while India has also concluded negotiations with the European Union and signed an
agreement with New Zealand.

These agreements offer Indian exporters significant tariff concessions. Under the agreement with the
UK, for instance, nearly 99% of Indian exports will receive zero-duty access. Oman has offered
duty-free access covering more than 99% of Indian exports by value. New Zealand has agreed to
eliminate tariffs across all tariff lines once the agreement comes into force.

Source: Trade Intelligence Analytics TIA Portal, Department of Commerce

From January 2026, Indian goods also received zero-duty access across all Australian tariff lines.

The agreement concluded with the EU is potentially the most significant because the size of the
European market comes closest to that of the U.S. The concessions negotiated cover more than 99% of
Indian exports by trade value, although the agreement is not yet in force.

Even as FTAs have expanded India’s access, the scale of these markets matters. India’s bilateral
trade with the UAE rose from about $43 billion in FY2021 to around $100 billion in FY2025. Trade
with Australia increased from roughly $12 billion to $24 billion over the same period.

This growth cannot be attributed entirely to trade agreements. Commodity prices, domestic demand,
exchange rates and wider economic conditions also affect bilateral trade. An FTA also does not
automatically redirect exports from one country to another. Exporters still have to find new buyers
and distribution networks. Products may also need to meet different regulatory and technical
standards. In some markets, non-tariff barriers may matter more than the tariff itself.

Trade with India’s FTA partners has grown

Pre-FTA reference level (FY2021)
FY2025 trade

Note: The chart compares trade before and after the FTA period. It does not imply
that the FTA caused the increase.

Source: Ministry of Commerce and Industry database

The EU illustrates both the opportunity and the limitation. It is the only market large enough to
approach the U.S. as an export destination for India, even as the U.S. remains the largest single
destination among the markets considered. India’s exports to the European bloc increased from about
$49.5 billion in 2017 to $78.5 billion in 2025. The EU accounted for about 17.6% of India’s
merchandise exports in 2025. Together, the U.S. and EU accounted for roughly 38% of India’s
merchandise exports that year.

The recently concluded trade agreement could substantially improve tariff access for Indian
products. But greater access does not guarantee that industries heavily dependent on American demand
will begin selling comparable quantities in Europe in the short term.

The same problem is more pronounced for smaller FTA partners. The UK is considerably smaller.
India’s exports to the country increased from about $9 billion in 2017 to $13.8 billion in 2025.
Australia also became more important, with exports rising from about $3.9 billion to $7.7 billion.
But it still accounted for only about 1.7% of India’s merchandise exports in 2025.

The UAE, UK and Australia can provide additional demand. But individually they remain far smaller
destinations for Indian merchandise than the U.S.

Diversifying away from the U.S. would be difficult in the short term, Dhar said. The U.S. is the
largest market for some of India’s most export-oriented industries, particularly mobile phones and
pharmaceuticals. Entering new markets would also take time and investment, especially for
pharmaceutical companies that need to establish their products and build demand, he said.

For sectors with high exposure to the U.S. market, it remains to be seen whether greater market
access through FTAs translates into more exports to these destinations.

Dhar pointed to China’s experience. Before Donald Trump began targeting China during his first term,
a much larger share of its exports went to the U.S.

“China saw the writing on the wall and began developing new markets for its exports,” Dhar said. By
the time Trump returned to the White House, that share had fallen substantially. “If India can
garner stronger political will, it could reduce its export dependence on the U.S. in a shorter time
span than China did.”

Data do not yet show India moving away from the American market. The U.S. share of Indian exports
has risen steadily, reaching more than one-fifth in 2025.

And the possibility of another major tariff shock has now moved closer.

The U.S. House of Representatives on Wednesday passed legislation giving Trump broad powers to
impose sanctions on Russia and tariffs of up to 100% on countries that buy Russian oil and gas.
India, one of the largest buyers of Russian crude since the invasion of Ukraine, could be affected
by the measure.

The legislation will now go to Trump to be signed into law. It does not mean a 100% tariff on Indian
goods automatically takes effect. Rather, it gives the President authority to impose tariffs of up
to that level on countries purchasing Russian energy.

For Indian exporters, the development adds another source of uncertainty around the market that has
become their most important overseas destination. India’s new trade agreements provide access to a
much wider set of markets. Whether those markets can reduce that dependence will ultimately depend
on whether Indian exports actually begin shifting towards them.

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Expect EU to sign FTA and India-Canada negotiations to be completed by year-end, govt says

admin — Tue, 15 Sep 2026 13:33:00 +0000

Union Commerce Secretary Rajesh Agrawal. File
| Photo Credit: ANI

The end of this year is likely to see India move considerably forward on trade agreements with both the European Union (EU) and Canada.

While the Indian government expects the EU authorities to sign the text of the free trade agreement (FTA) with India by the end of this year, it also expects to complete negotiations on an FTA with Canada by that time, Commerce Secretary Rajesh Agrawal said on Tuesday (September 15, 2026).

Further, Commerce Minister Piyush Goyal will be traveling to the U.S. at the end of this month to attend the G20 Trade Ministers’ meeting, during which he will likely hold a bilateral meeting with his U.S. counterpart to discuss trade issues, including the much-delayed interim trade agreement announced in February.

The India-New Zealand FTA is also expected to become operational in the second half of October, Mr. Agrawal said, adding that an exact date has not been finalised. The Hindu, however, has learnt that the most likely date for operationalisation is October 19.

EU FTA on track

“On the EU FTA, it is moving as per schedule,” Mr. Agrawal said. “The European Commission has sent it to the European Council for approval. After approval, it goes for signing. We expect them to sign it before the end of this year.”

After signing, the deal will have to be passed and ratified by the European Parliament.

“As far as the process has gone on, I think it is the fastest so far,” Mr. Agrawal noted.

Canada deal expedited

The Hindu had reported on September 10 that the India-Canada Comprehensive Economic Partnership Agreement (CEPA) would be completed by the end of this year, citing comments made by Canadian High Commissioner Christopher Cooter at The Hindu Mind event in New Delhi.

Mr. Agrawal has now confirmed this, saying that the Canadian team is currently in New Delhi and that both sides are working towards a year-end deadline.

“The fourth round of negotiations are ongoing,” Mr. Agrawal said. “The discussions are across all the chapters of the deal. Negotiations for two chapters have already been concluded. Both sides want to see good progress in this round because we are looking at a very tight timeline as both sides are working to see if we can close this agreement within the end of this year.”

Talks with U.S.

The Commerce Secretary also confirmed that Mr. Goyal will be traveling to the U.S. for the G20 Ministerial meeting on trade that is scheduled to take place on September 30 to October 1.

“We expect during the visit there definitely will be a bilateral meeting between the ministers, though it has not been confirmed and finalised,” Mr. Agrawal said. “When the bilateral takes place, all trade issues will be discussed. Even the ongoing FTA negotiations and the way forward on that will be on the agenda for discussion.”

India has been holding off on signing the interim agreement on trade with the U.S., announced in February 2026, waiting for the U.S. to make clear India’s tariff advantage over its competitors as had been agreed to.

In the meantime, the U.S. has levied a 10% tariff on India for not doing enough to stop the import of goods made using forced labour. It is also investigating whether India and other countries are using excess capacity to export to the U.S., which could see additional tariffs being levied.

Published – September 15, 2026 07:00 pm IST

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India-EU FTA moves one step closer to reality as European Commission moves to get it signed

admin — Fri, 11 Sep 2026 12:52:00 +0000

Leaders on both sides have repeatedly expressed their confidence that the India-EU Free Trade Agreement will come into force in early 2027. File
| Photo Credit: Getty Images/iStockphoto

The European Commission has forwarded the text of the India-EU Free Trade Agreement to the European Council for its signature and conclusion, signalling that the legal vetting and finalisation of the text have been completed and all that remains are the internal approvals.

“Today, the European Commission has put forward its proposals to the Council for the signature and conclusion of the Free Trade Agreement (FTA) between the European Union and India, seeking authorisation for its signature and conclusion,” the Commission said in a statement on Friday (September 11, 2026).

The EU’s Ambassador-designate to India and Bhutan Jean-Eric Paquet took to X to celebrate the achievement, saying this would “clear the path for early approval”, and adding that the full text of the agreement was now being made public.

The European Council is the top political body of the European Union, framing the grouping’s political goals. The European Commission acts as the EU’s executive body and proposes new laws. The European Parliament votes and passes these new laws.

“With its proposals, the Commission is seeking Council’s approval to sign the agreements which will then require European Parliament’s consent, before conclusion and entry into force,” the statement said. “The Indian authorities are in parallel going through their own internal ratification procedures.”

It added that the proposal to sign and conclude the FTA text is in line with the fast-track procedure laid out by EU Commissioner for Trade and Economic Security Maroš Šefčovič earlier this year.

“The procedure aims at speeding up the implementation of FTAs, which is crucial at a time of geopolitical uncertainty and growing pressure on the global trading system,” the statement said. Leaders on both sides have repeatedly expressed their confidence that the FTA will come into force in early 2027.

Published – September 11, 2026 06:22 pm IST

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India-EU FTA moves one step closer to reality as European Commission moves to get it signed

admin — Fri, 11 Sep 2026 12:52:00 +0000

Leaders on both sides have repeatedly expressed their confidence that the India-EU Free Trade Agreement will come into force in early 2027. File
| Photo Credit: Getty Images/iStockphoto

It added that the proposal to sign and conclude the FTA text is in line with the fast-track procedure laid out by EU Commissioner for Trade and Economic Security Maroš Šefčovič earlier this year.

Published – September 11, 2026 06:22 pm IST

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EU FTA puts India on a level playing field against competitors in labour-intensive sectors: chief negotiator

admin — Sun, 21 Jun 2026 10:14:00 +0000

The free trade agreement (FTA) between India and the European Union puts India on a level-playing field with a number of its competitors in a number of labour-intensive sectors such as textiles, apparel, leather goods, footwear, engineering goods, and marine products, India’s chief negotiator on the FTA Darpan Jain explained on Wednesday (January 28, 2026).

India-EU trade pact to be signed by December; implemented from Feb-Mar next year: Piyush Goyal

In addition, while emphasising that the overall FTA will benefit all States in India, Mr. Jain also highlighted several sectoral benefits to States such as Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, Odisha, and West Bengal.

India and the EU on Tuesday (January 27, 2026) signed a document marking the conclusion of negotiations on an FTA that both sides have dubbed the ‘mother of all deals’.

Textiles sector to benefit

“Duty-free access from an earlier duty of up to 12% in textiles, apparel and clothing provides a level playing field for exporters and boosts India’s competitiveness in the EU vis-a-vis competitors such as Bangladesh, Vietnam, and Turkey, which enjoy duty-free or preferential access under EU trade agreements,” Mr. Jain said.

Under the deal, duties on leather goods, footwear, textiles, apparel, and clothing will be entirely removed as soon as the FTA comes into force.

“Key clusters in Tamil Nadu, Gujarat, Maharashtra, Rajasthan, Uttar Pradesh, Bihar, and West Bengal are set to see capacity expansion and development,” Mr. Jain asserted.

Engineering gains an edge

In the engineering sector, Mr. Jain said India would gain a competitive edge over its competitors such as China, the United Kingdom, the U.S., Vietnam, and Turkiye as India has managed to secure “preferential access” and reduced tariffs under the FTA.

This, he said, is expected to help States like Maharashtra, Tamil Nadu, Gujarat, Karnataka and Andhra Pradesh to adopt advanced technologies, scale up operations, and strengthen MSME networks.

The electronics sector is set to benefit in similar fashion, Mr. Jain explained.

“The FTA reduces existing tariffs of up to 14% and opens 99.6% of India-EU electronics trade, creating a level playing field against global competitors like China, US, Taiwan, and Vietnam,” he said, adding that this stands to benefit hubs in Bengaluru, Pune, Noida, Chennai, and Hyderabad.

Coastal States get advantage

The marine sector will see 94.4% of marine exports to the EU see duties entirely eliminated as soon as the FTA comes into force, down from a current tariff rate of up to 26%. Another 1.9% of exports will see tariffs being eliminated in phases.

“The FTA removes the duty disadvantage faced by Indian marine exports with regard to countries like Morocco, Ecuador, and Vietnam, which enjoy duty-free or preferential access,” Mr. Jain said.

States that are set to benefit from this are the ones with strong coastal clusters such as Tamil Nadu, Andhra Pradesh, Kerala, Gujarat, Odisha and West Bengal, he added.

He further said that the FTA would improve India’s competitiveness in the pharmaceuticals and medical devices sectors against competitors such as the US, China, and Japan, to the benefit of MedTech hubs in Telangana, Karnataka, Andhra Pradesh, Maharashtra, and Gujarat.

Published – January 28, 2026 07:17 pm IST

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EU’s Ursula von der Leyen wants to seal investment agreement with India, calls it ‘missing puzzle’

admin — Mon, 18 May 2026 15:13:00 +0000

Prime Minister Narendra Modi poses for a picture with Prime Minister of Sweden Ulf Kristersson and European Commission President Ursula von der Leyen, in Gothenburg on Sunday, May 17, 2026.
| Photo Credit: DPR PMO via ANI

President of the European Commission Ursula von der Leyen once again called for an investment agreement between India and the European Union (EU), terming it a “missing piece of the puzzle” in the cooperation plans of the two economies.

Ms. von der Leyen was speaking at the European Business Round Table for Industry in Gothenburg, Sweden, where Prime Minister Narendra Modi also delivered his address.

The investment agreement, being negotiated alongside the trade deal, was not finalised as the two sides could not agree on some key aspects, the most notable being dispute resolution.

‘Half the equation’

“But trade is only half the equation,” Ms. von der Leyen said. “Our next step must be to deliver an investment agreement. This is the missing piece of the puzzle in our reinforced economic cooperation, especially in a world where supply chains are being reshaped, and economic security challenges us as never before. Deepening our investment ties will help us to de-risk and diversify.”

During his address, Mr. Modi did not touch upon the investment agreement but instead highlighted the benefits of the trade deal and the other agreements that have been signed between the EU and India.

“The India-EU FTA will create new opportunities for industries, investors, and innovators,” Mr. Modi said.

“The Security and Defence Partnership and the Mobility Agreement have given new strength to our strategic and people-centric partnership,” he added. “The India-EU Trade and Technology Council has further deepened our cooperation. We are working together in areas such as digital technology, clean energy, semiconductors, resilient supply chains, and innovation.”

‘Trade agreement opened the door’

In the 26 years between January 2000 and December 2025, European countries have invested a little more than $110 billion as direct investment in India, making up for about 14% of the total foreign direct investment India has attracted during the period.

However, the most recent years reveal considerable volatility in the inflows from Europe.

For example, FDI from Europe stood at about $5.5 billion in 2025, having fallen from approximately $10.6 billion in 2024, which had seen a significant increase over the $5.3 billion in 2023.

Consequently, Europe’s share in India’s total FDI fell to less than 10% in 2025 from about 20% the year before, and about 13% in 2023. Ms. von der Leyen indicated that an investment agreement would enhance investment flows.

“Basically, one can say that the trade agreement opened the door,” Ms. von der Leyen added. “An investment agreement walks us through it.”

On Tuesday (May 19), Mr. Modi will meet Nordic leaders from Denmark, Sweden, and Finland at the Nordic India Summit where the India-EU free trade agreement will be discussed again.

Norway and Iceland — also part of the Nordic Summit — are EFTA countries that signed a separate Trade and Economic Partnership Agreement (TEPA) with India in 2024, which came into force in 2025. The occasion will also see a stock-taking of the progress of this deal thus far.

Compliance and dispute resolution

According to several people who have been tracking the negotiations between India and the European Union, the biggest factor holding up the investment agreement were the differences between the two economies on dispute resolution. Other issues pertain to concerns over land acquisition, judicial protections, and exit clauses.

India had in 2017 unilaterally put an end to nearly all its Bilateral Investment Treaties (BITs), and has subsequently announced a new approach to dispute resolution that has engendered uncertainty among foreign investors.

The key issue is that, under the BITs, disputes over foreign investment used to be arbitrated in a third country. The new framework seeks to replace this with an India-centric dispute resolution process.

Published – May 18, 2026 08:43 pm IST

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Government working on FTA utilisation plan to maximise benefits for businesses

admin — Sun, 10 May 2026 06:26:00 +0000

Union Minister Piyush Goyal. File
| Photo Credit: ANI

With India signing a series of free trade agreements with developed countries, the government is working on an FTA utilisation plan to help maximise benefits from these pacts, an official said.

Since 2021, India has finalised free trade agreements (FTAs) with Mauritius, Australia, the UAE, Oman, New Zealand, the EFTA (European Free Trade Association), the European Union (EU), the U.K. and U.S.

These pacts cover 38 countries whose combined global imports stand at about $12 trillion.

The main Indian sectors that have received duty-free market access in these FTA partner countries include agriculture, textiles and apparel, gems and jewellery, leather and leather goods, engineering, electronics, chemicals, and pharmaceuticals.

Commerce and Industry Minister Piyush Goyal has held a series of meetings with industry associations, businesses and export promotion councils (EPCs) on ways to increase utilisation of these agreements. He suggested that businesses leverage these pacts to boost exports and domestic manufacturing.

The official added that the Minister on Monday (May 4, 2026) held a review meeting with key officers and chief negotiators to asses the progress of India’s free trade acts.

Another meeting on Thursday (May 7, 2026), was held on preparing a roadmap for obtaining sanitary and phytosanitary (related to plants and animals) approvals for Indian agricultural and fisheries products across global markets.

The Commerce Ministry has involved Indian missions abroad in the exercise. Besides, all the line ministries are part of the process, the official said.

The role of Indian missions includes ensuring FTA awareness in importing country, market intelligence on new opportunities, and expediting resolution of non-tariff barriers.

Similarly, the line ministries’ role includes ensuring sufficient production, alignment with global standards, and focus on trade facilitation.

The whole exercise is important as the country is looking at increasing goods and services exports to $2 trillion in the coming years (one trillion each).

The country’s goods and services exports rose 4.6% to an all-time high of $863.11 billion during 2025-26, from $825.26 billion in 2024-25, despite global economic uncertainties.

Merchandise exports grew 0.93% to $441.78 billion in the last fiscal year from $437.70 billion in 2024-25. Services exports too surged to an all-time high of $421.32 billion in 2025-26, compared to $387.55 billion a year ago, recording a growth of 8.71%.

Shishir Priyadarshi, President, CRF, and former Director, WTO, said Indian businesses must stop viewing FTAs merely as tariff-cutting arrangements as their real value lies in helping firms integrate into global value chains, diversify supply chains, and position themselves as trusted partners in an increasingly fragmented global economy.

“The FTAs should be seen as an opportunity not just to export more, but to export smarter – through branded products, advanced manufacturing, processed goods, and higher-value services that strengthen India’s long-term industrial competitiveness globally,” he said.

Published – May 10, 2026 11:56 am IST

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India and EU to give each other Most Favoured Nation status for 5 years, draft trade deal shows

admin — Sat, 28 Feb 2026 02:08:00 +0000

Union Minister of Commerce and Industry Piyush Goyal greets during India-EU FTA joint press conference, in New Delhi. File
| Photo Credit: ANI

Feb 27 (Reuters) – The European ‌Union and India have agreed ⁠to grant each ‌other Most ‌Favoured ‌Nation ⁠status for ⁠a period of five years ‌starting from the date of ‌a trade deal entering into force, ⁠a draft of ‌the agreement showed on Friday (February 27, 2026).

Read | The India-EU trade deal is also a strategic turning point

The FTA, finalised after years of negotiations re-launched in 2022, eliminates or reduces tariffs on 96.6% of EU exports to India by value and 99.5% of Indian exports to the EU by trade value.

Published – February 28, 2026 07:38 am IST

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Global order in peril from lack of cooperation, says Merkel; slams China, U.S. for resisting AI regulation

admin — Thu, 26 Feb 2026 17:03:00 +0000

Angela Merkel, former German Chancellor, delivering the inaugural Dr. Manmohan Singh Memorial Lecture in New Delhi on February 26, 2026.
| Photo Credit: Shashi Shekhar Kashyap

The global “order of cooperation” has been supplanted by “might makes right”, former German Chancellor Angela Merkel said on Thursday (February 26, 2026), blaming Russia for overturning territorial principles in its invasion of Ukraine, and the United States for weakening the United Nations and multilateralism.

Delivering the inaugural Dr. Manmohan Singh Memorial Lecture, Ms. Merkel said many of the issues facing the world today could benefit from Singh’s “works and beliefs”. Her term as Chancellor of Germany (2005-2021) overlapped with his tenure as Prime Minister of India (2004-2014). Ms. Merkel welcomed the finalisation of the India-European Union Free Trade Agreement (FTA) that they had initiated in 2006, after “a marathon of negotiations”, in January this year.

“After the global financial crisis (2008) and its impact — recession in industrialised nations and the developing world —[Dr. Singh] made it clear that these difficulties needed cooperation, not confrontation,” Ms. Merkel told former National Security Advisor and author Shiv Shankar Menon in a conversation following the speech, which was entitled, “Germany and India in times of global change”.

‘Protectionism stifling growth’

“Dr. Singh’s warnings are of prime importance today as protectionism is stifling growth. This is why the India-EU FTA is so important,” she added, pointing out that the agreement could only move forward after European countries agreed to keep the sensitive agricultural sector out of the negotiations.

The event was organised by the Manmohan Singh Trust, which was established by his family and supported by the government, after his death in 2024. It was attended by several Opposition leaders including former Congress president Sonia Gandhi, former Finance Minister P. Chidambaram, and former External Affairs Minister Salman Khurshid, along with government officials, diplomats, and academics.

Recounting her interactions with the former Indian PM, Ms. Merkel — who credited him with the economic liberalisation of 1991 that “set the path for India’s economic growth for the next 30 years” — said he had never forced his opinions on her, but made her think about the conditions of the developing world, not just Europe and industrialised nations. She said she was disappointed that India did not initially support her objectives on climate change, as Singh said the Indian Parliament would never allow binding commitments on carbon reduction. The resultant compromises eventually led to the adoption of the Paris climate accord, she said.

‘Hold Big Tech to account’

Issuing a warning about the advent of unregulated technology, particularly Artificial Intelligence, Ms. Merkel said that it was the responsibility of governments to protect the interests of their people, and hold big technology companies, social media platforms, and AI developers to account.

“Those of us still believing in multilateralism must work to protect these interests, as countries like China are setting their own rules and the United States is trying to prevent any kind of regulation [of AI]. If we don’t, the principle of multilateralism will be outdated and ossified,” Ms. Merkel said, adding that Singh’s record could be a source of “inspiration and courage” to find a way through the divergence.

‘Democracy under pressure’

Ms. Merkel, who has recounted her meetings with both former PM Singh and current Prime Minister Narendra Modi in her memoirs, Freedom, said that she had been particularly impressed with India’s size and vast population, but also its diversity. During her lecture, she mentioned Singh’s tenure as the first Prime Minister from a minority (Sikh) community of more than a billion Indians as a matter of “pride”.

Ms. Merkel, who stepped down in 2021 after severe criticism of her migrant policy as well as her handling of Russia, said that democracy was under “pressure” across the world, including in Germany, but insisted that she stood by her decisions while in office. At the Christian Democratic Union’s party congress in Stuttgart last week, attended by Chancellor Friedrich Merz, Ms. Merkel had received a standing ovation from delegates, leading to speculation about her continuing interest in politics. However, responding to a question at Thursday’s event, Ms. Merkel said it was better for retired leaders not to express opinions or interfere in their successor’s work.

Published – February 26, 2026 10:33 pm IST

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