EU eyes bigger role in ‘Make in India’ as FTA talks set to begin today
NEW DELHI: As India and the European Union gear up for the 14th round of Free Trade Agreement (FTA) negotiations starting October 6 in Brussels, European businesses are expressing stronger interest in India’s expanding economy and the government’s “Make in India” initiative.
At the second Annual General Meeting of the Federation of European Business in India (FEBI), Herve Delphin, Ambassador of the Delegation of the European Union to India, said India already hosts a large European business footprint. He added that an FTA could unlock even greater opportunities for trade, jobs, and investment.
According to a new FEBI survey, more than 6,000 European companies currently operate in India, employing over three million people. These firms not only invest but also manufacture, innovate, and export from India, directly contributing to Prime Minister Narendra Modi’s ‘Make in India’ mission.
“EU businesses perceive India as an attractive market, a market with challenges but also one that offers huge opportunities. While benefiting from these opportunities, EU companies also make substantial contributions to the Indian economy. They create jobs, invest, manufacture, and innovate in India. In short, they’re ‘Make in India’,” Delphin said.
EU remains India’s largest trading partner
The European Union continues to be India’s largest trading partner, with trade in goods reaching €120 billion, surpassing both the United States and China. When services are included, bilateral trade has touched €180 billion, according to the FEBI survey.
Despite these strong figures, Delphin noted that “huge untapped potential” remains, given that the EU and India are the world’s second- and fourth-largest economies. “To unlock this untapped potential, the EU and India are negotiating the FTA,” he said.
FTA expected to boost investments and supply chains
With the next round of talks scheduled this week, both sides expect significant progress on the agreement. Delphin said, “With an FTA, it could be much bigger. Eighty per cent of EU firms said they would scale up investment and jobs in India.”
European Commission President Ursula von der Leyen and Prime Minister Narendra Modi have set a goal to conclude the deal by the end of 2025. “The EU was and is still ready to conclude on a meaningful package. We look forward to the next round and further negotiations towards a mutually beneficial deal,” the ambassador added.
Investment protection pact, strategic agenda
Alongside the FTA, both sides are also negotiating an Investment Protection Agreement aimed at creating a predictable and secure environment for investors. The pact is expected to balance the right of states to regulate with greater clarity and security for businesses.
The EU has also unveiled a new EU-India Strategic Agenda that links prosperity, sustainability, technology, defence and mobility. The proposals include innovation hubs, Blue Valleys for value chains, a TTC 2.0 for critical supply chains, and a gateway office to ease ICT worker mobility.
‘Auspicious sign’ for stronger partnership
The EU Ambassador said that India’s growth story lies at the centre of Europe’s economic vision. “FEBI and the whole community of European business in India are part of India’s growth story as well as of the EU-India partnership,” Delphin said.