India-EU FTA to be ‘groundbreaking’; maximising efforts to finalise negotiations by year-end: EU’s Maroš Šefčovič

The talks between India and the European Union (EU) are intensive for a free trade agreement between India and the European Union, which will be ‘groundbreaking’, according to Maroš Šefčovič, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency, EU.

“We have been negotiating this for quite some time. I can tell you that it never got to such a momentum between Minister Goyal and me, along with strong political support from Prime Minister Narendra Modi and head of the European Commission, Ursula von der Leyen,” Šefčovič said at the 65th Annual Session of the Automotive Components Manufacturers Association on Friday in New Delhi.

“We have been maximising efforts to finalise negotiations by the end of the year, as it was agreed by the President of the European Commission, Urusula von der Leyen and Prime Minister Modi earlier this year. We are striving to put in place an economically meaningful win-win package that brings real added value to business and consumers both in India and in the EU,” said Šefčovič.

India is fast becoming a key engine of the global economy, which, according to Šefčovič, finds itself in challenging times. “Global trade, as we had it until recently, has been disrupted severely. Therefore, we need to embrace the possibilities of a new reality, as much as protecting ourselves from the risks of the unpredictable events.”

Therefore, India and the European Union have been collaborating to increase investments, reduce trade barriers, expand market access, and enhance supply chains in a manner that benefits both parties. “As a part of the wider effort, to boost our vital partnership in the face of shifting geopolitical and economic sense, which has made us work even harder to make sure that we create this condition for business leaders to thrive and use this opportunity,” said Šefčovič.

He also stated that the two nations now understand the importance of economic and trade partnerships more than they did in the past. “I can speak for both that we have a mutual interest in engaging more closely on both bilateral and global issues. I don’t think it is beyond reason to say that the quality of the relationship is important not just for India and the EU, but for the global economy,” he said.

 Šefčovič recalled that in 2024, the EU was India’s largest trading partner, ahead of the U.S. and China. “More than 60 European companies operate in India, while overall bilateral trade in goods hit $140 billion two years ago. The European companies in India created more than three million jobs here.”

Trade between the EU and India over the past decade has been equally impressive, said Šefčovič. “Trade between India and the EU has grown 90% in the past decade. I think you can hardly find the bilateral economic relationship which is growing so fast and has so much potential for cooperation,” he said. 

Šefčovič also alluded to future synergies between the two parties that would drive technological advancements, enhance supply chains, and accelerate innovation. “The automotive sector powers both our economies, and I think it will be at the centre of the partnership,” he said.

Šefčovič also invoked Karl Benz, the German inventor of the automobile, who said, “The love of inventing never dies.” Europe’s expertise in engineering and green technology, combined with India’s growing market and manufacturing capabilities and capacity, offers a unique blend that can foster growth, create jobs, and promote sustainability in both regions, he added.