Why industry loves the India-EU free trade deal

The India~European Union Free Trade Agreement (FTA) is more than the culmination of a long and complex negotiation.

- Chandrajit Banerjee

It signals a conscious shift in how India is positioning itself in a changing global economy. Ata time when trade is increasingly shaped by geopolitical uncertainty, supply-chain stress and strategic realignment, this partnership stands out not just because of its scale, but because of its purpose. It brings together two large and deeply complementary economies that together account for one-fourth of global GDP and lays the groundwork for building a sustainable, future-ready economic relationship.

What makes this agreement the “mother of all partnerships” is that it is not built around narrow transactional gains. Its comprehensive in design and long-term in ambition. By covering trade in goods and services alongside investment, digital trade, sustainability, mobility, and technology cooperation, it creates an economic framework rather than asimple tariff exchange. This matters for the Indian industry because competitiveness today is no longer defined only by access to markets. Itis defined by the ability to operate within stable, trusted, and resilient networks that span production, innovation, and skills.