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India-EU FTA Talks to Restart After Decade-Long Standoff

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  Published in Politics and Government on Tuesday, January 13th 2026 at 19:31 GMT by ThePrint

The FTA Renaissance: Breaking a Decade-Long Standoff

One of the most tangible signs of this renewed commitment is the imminent restart of negotiations for the long-stalled India-EU Free Trade Agreement (FTA). After a frustrating hiatus of nearly a decade, discussions are expected to formally resume shortly. This isn't simply about trade; it's a symbolic gesture, demonstrating a willingness to overcome past disagreements and embrace a future built on mutual economic benefit. While a trade deficit currently exists for the EU with India, the long-term strategic importance of the Indian market and potential for foreign direct investment is undeniable.

Shared Concerns, Converging Interests

Underlying this newfound momentum are converging views on a multipolar world. Both India and Europe recognize the need to move away from a single-dominant power structure, although practical implementation and specific policy choices inevitably lead to disagreements. These differences, however, are being managed with a greater degree of flexibility and a focus on finding common ground. Disagreements persist on issues such as the pace and methods of tackling climate change, and nuances regarding trade practices. However, the shared imperative to navigate the volatility created by the current international situation appears to outweigh these differences.

Security Convergence: A Counterbalance to China's Influence

Beyond trade, the security dimension is experiencing significant convergence. Europe, acutely aware of China's expanding geopolitical influence and seeking to diversify its strategic partnerships, finds in India an ideal candidate. India's status as the world's largest democracy, its geographically strategic location, and its growing military capabilities resonate strongly with European security concerns. This isn't just a governmental strategy; Indian and European businesses and civil society organizations are actively fostering closer ties.

Digital Innovation and Financial Inclusion: Areas of Mutual Admiration

The relationship extends beyond traditional sectors. Europe is particularly impressed by India's rapid advancements in digital infrastructure and its ambitious initiatives to promote greater financial inclusion. India's experience in leveraging technology to bring banking and financial services to underserved populations is generating considerable interest across Europe, where similar challenges persist.

Looking Ahead: A Relationship Built on Uncertainty

The India-Europe partnership is not without its complexities. Diverging perspectives on certain issues remain. However, the current global climate, characterized by geopolitical uncertainty and a rebalancing of global power, has created a unique window of opportunity for deeper cooperation. As the global landscape continues to evolve, and as the impacts of the Trump administration's policies ripple across the globe, the deepening relationship between India and Europe promises to be a significant force for stability and a testament to the power of shared interests in an increasingly unpredictable world. The success of the FTA negotiations will be a crucial indicator of the long-term viability and strength of this emerging axis of stability.