India and European Union Move Closer to Major Trade Partnership After FTA Conclusion

The agreement still needs formal approval before implementation.

In the European Union, the ratification process usually takes around one year.

The agreement requires:

• Approval from the Council of the European Union

• Consent from the European Parliament

Legal experts in the EU are currently reviewing the negotiated text.

This legal scrutiny is expected to finish by July 2026.

Investment Protection Agreement

Separate Negotiations Continuing

The main FTA does not include a complete investment protection chapter.

Separate negotiations are continuing for an:

• Investment Protection Agreement

Some European companies have expressed concerns regarding:

• Investment security

• Investor protection

• Legal safeguards

Both sides are continuing discussions on these issues.

India-EU Trade Relations

Strong Economic Partnership

(India and European) Union are major trading partners.

Trade in goods between both sides reached:

• USD 136.54 billion in 2024–25

Trade in services reached:

• USD 83.10 billion in 2024

The agreement is expected to increase trade further in the coming years.

Global Economic Importance

Impact on Large Population and Trade

The agreement is projected to:

• Cover nearly one-third of global trade

• Affect around 2 billion people

This makes the agreement globally important.

It may influence:

• Supply chains

• International trade patterns

• Investment flows

• Economic cooperation

European Union and Trade Policy

Common Trade Policy

The European Union has 27 member countries.

The EU follows a common trade policy for external trade agreements.