New Delhi | February 6, 2026 | SKY LINK TIMES
India-EU FTA Signed:
External Affairs Minister (EAM) S Jaishankar on Friday described the recently concluded India-European Union Free Trade Agreement (FTA) as a “game-changing development” in bilateral relations. Speaking at the inaugural India-EU Forum, he said the landmark agreement marks a transformative milestone in the strategic partnership between the two economic powers.
S Jaishankar emphasized that the FTA would significantly deepen trade and investment ties while opening new avenues for cooperation in security, defence, climate action, technology, and talent mobility.
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FTA a Transformative Milestone
Addressing the forum, S Jaishankar highlighted the broader implications of the agreement beyond trade.
“Addressed the inaugural India-EU Forum this morning. Highlighted that the FTA has been a game-changing development for our partnership. Also flagged other dimensions that hold great potential, including security, defence, climate, technology and talent flows,” the Minister posted on X.
The agreement was formally hailed on January 27 during the 16th India-EU Summit, co-chaired by Prime Minister Narendra Modi, European Council President Antonio Costa, and European Commission President Ursula von der Leyen.
In a joint statement, the leaders described the FTA as a “historic deal” and a milestone in the India-EU Strategic Partnership.
Boost to Trade, Investment and Supply Chains
According to the joint statement, the FTA is expected to significantly enhance bilateral trade and investment flows, strengthen resilient and diversified supply chains, and promote sustainable and inclusive economic growth.
At a time of global economic disruptions and geopolitical uncertainty, both sides stressed that closer economic ties are critical for driving growth, job creation, industrial development, and accelerating the green transition.
The leaders also reaffirmed the central role of the World Trade Organisation (WTO) in global trade governance and underlined the need for meaningful and comprehensive reforms to strengthen the multilateral trading system.
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What Comes Next: IPA and GI Agreements
While celebrating the FTA breakthrough, India and the EU committed to fast-tracking negotiations on two additional agreements — an Investment Protection Agreement (IPA) and an Agreement on Geographical Indications (GIs).
These agreements are expected to provide stronger legal safeguards for investors and better recognition of region-specific products, further boosting bilateral confidence and economic cooperation.
Additionally, both sides agreed to scale up bilateral investments and explore initiatives such as “Blue Valleys” to enhance private sector engagement in strengthening key value chains.
Strategic Significance in a Changing Global Order
The India-EU FTA comes at a time when nations are seeking diversified, trustworthy supply chains and stable economic partnerships. With the EU being one of India’s largest trading partners, the agreement could reshape trade flows, expand market access, and elevate India’s global economic positioning.
As S Jaishankar noted, the agreement is not just about commerce — it reflects growing strategic convergence between India and Europe across economic, technological, and geopolitical domains.
With implementation now the key focus, policymakers on both sides are expected to move swiftly to translate this landmark deal into tangible economic outcomes.
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