Trade route to closer relations with the EU

India has a rich trading relationship with Europe that dates back to 250 BC, even predating the Silk Road.

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For most of the 2,000 years since, Indian muslins, cotton, handicrafts, spices, emeralds, and gems were the most coveted merchandise in international trade, a bulk of which made their way to Europe. In return, gold and silver poured into India to pay for these. The Indo-Europe trade achieved great scale and proportions in its halcyon days.

The efforts to cement this relationship through a comprehensive free trade agreement (FTA) with the European Union started in 2007. The negotiations had to be abandoned in 2013 due to serious differences in positions on multiple issues. The negotiations started afresh in 2022, and despite the enormity and complexity of the challenges, could be completed only due to the strong commitment and visionary leadership of the two parties. Importantly, the FTA that both sides have negotiated is a reaffirmation of the rulesbased trading relationship in an increasingly fragile global economic order. The agreement is historic not merely because of the breadth and depth of the topics and disciplines, but also because both sides reached common ground on many difficult issues.