India and the European Union are poised to sign their Free Trade Agreement within less than a year, according to the EU Ambassador, who told ANI that the breakthrough was driven by realism and pragmatism. The agreement took nearly two decades to conclude, but the Ambassador said the latest negotiations should not necessarily be viewed as a continuation of the earlier talks.
Two-Decade Negotiation Recast by Pragmatism
Speaking to ANI, the Ambassador said his tenure focused on developing a comprehensive understanding of India and strengthening cooperation across a wide range of sectors. He described the India-EU relationship as encompassing a broad range of sectors rather than being limited to one particular area, and identified that as one of the key achievements of his tenure.
"The role of a diplomat is first and foremost to present and represent the views of his own country and to promote the interest. But at the same time, our job is also about listening, observing and building a greater understanding on the opportunities and challenges in the country of posting," he said.
The Ambassador said the latest negotiations were recast rather than a continuation of earlier talks:
We didn't lose time and energy in trying to negotiate on issues that we knew were considered as red lines by the other side.
According to the Ambassador, the negotiations gained momentum from 2025 and were concluded in a little over a year. He expressed hope that the agreement would be signed within less than a year and highlighted the strong political push behind the agreement amid a period of increased global volatility and uncertainty.
| Milestone | Timeline |
|---|---|
| Initial India-EU FTA negotiations | Nearly two decades |
| Negotiations gain momentum | From 2025 |
| Negotiations concluded | In a little over a year |
| Expected signing | Within less than a year |
CBAM: A Sector-Specific Concern for Indian Exporters
Addressing concerns among Indian exporters over the EU's Carbon Border Adjustment Mechanism (CBAM), the Ambassador said the measure was designed to prevent "carbon leakage" and incentivise lower emissions. He explained that European companies operating in the EU single market are subject to the EU Emissions Trading System, and that CBAM seeks to address the competitive disadvantage that could arise from imports with high carbon content.
The Ambassador stressed that CBAM would not affect all Indian exporters equally. "As far as India is concerned, I think 80 per cent or more of India's exports to Europe which have a high carbon content refers to steel and iron. So it's not all exporters in all sectors. It is a very specific sector," he said.
He said the EU had been engaging with Indian authorities and affected industries during the consultation process, adding that the Indian steel industry was increasingly looking towards reducing its carbon footprint. According to the Ambassador, Indian steelmakers producing low-emission steel could ultimately benefit from CBAM, as Europe is expected to remain a net importer of steel.
"I think you have to right-size the issues, and I think we are confident through conversation, exchanges and mutual understanding that this problem will be addressed in a fair way," he said.
Complementarity, De-risking and Strategic Sectors
The Ambassador said the complementary nature of the Indian and European markets also helped facilitate the negotiations. "India and the EU offer each other complementarity in scale in terms of access to each other's market," he said, adding that the two sides were not competing head-on in the same sectors.
On efforts by both India and the EU to reduce dependence on a single market and build resilient supply chains, the Ambassador said the two sides shared the strategic objective of "de-risking" and increasing the resilience and reliability of supply chains. He said the FTA would act as an important enabler, while cooperation would also be strengthened through an Investment Protection Agreement and the India-EU Trade and Technology Council (TTC).
The Ambassador said the two sides were examining strategic sectors including semiconductors. He added that the strong political push, the pragmatic negotiation approach, and the complementary scale of the two markets collectively underpinned the FTA breakthrough that is now expected to yield a signed agreement within less than a year.
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