Negotiating trade deals with Europe

India must deepen ties with multiple partners to protect its interests at a time of global churn

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Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have set their negotiators the formidable task of stitching together a free trade agreement (FTA) within the year, at a time when the global economy is grappling with the fallout of the chaotic policies of the Donald Trump administration in the US.

While the EU is India's largest trading partner, accounting for trade worth almost $198 billion in 2023, the two sides have struggled to reach common ground on a trade deal.

The negotiations began in 2007, before being suspended in 2013 and then revived in 2022. Clearly, the trade wars set off by Trump's tariff threats and unilateral decisions were a trigger for India and the EU setting a deadline for the first time for their proposed FTA.