External Affairs Minister S Jaishankar has hailed the recently finalised India-EU Free Trade Agreement as a game changer for the bilateral relationship and emphasised the broader opportunities it unlocks across security, defence, climate, technology and talent movements.

Speaking at the inaugural India-EU Forum, organised by the Ananta Centre in partnership with the Ministry of External Affairs, he highlighted the agreement as a pivotal milestone in deepening economic and strategic ties between two of the world’s largest economies.

He noted that the FTA marks a significant step in transforming a traditional trade pact into a modern, rules-based partnership capable of addressing contemporary global challenges.

Jaishankar underscored the scale of the opportunity, pointing to the combined market of India and the EU, estimated at over ₹2,091.60 lakh crore (USD 24 trillion). He argued that the framework creates a stable, predictable environment for exporters and enables Indian businesses, including micro, small and medium enterprises (MSMEs), to plan long-term investments and integrate into European value chains amid global uncertainties.

The minister stressed that the agreement provides preferential market access for more than 99 per cent of India’s exports by trade value, while also preserving policy space for sensitive sectors and reinforcing India's developmental priorities.

In his remarks, Jaishankar highlighted the balance struck within the FTA, noting that India has secured preferential access across 97 per cent of tariff lines, encompassing 99.5 per cent of trade value. He pointed out that a substantial portion of tariff lines—70.4 per cent covering 90.7 per cent of India’s exports—will see immediate duty elimination in labour-intensive sectors such as textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery, and certain marine products.

A further 20.3 per cent of tariff lines are slated for zero duty over three to five years, with a further 6.1 per cent undergoing tariff reductions or tariff rate quotas for items including cars, steel and some seafood products. He framed these figures as evidence of the concrete, near-term benefits for workers and industries across both sides.

The minister also highlighted employment-generating sectors that have historically faced EU duties, noting that duties ranging from 4 per cent to 26 per cent currently affecting these sectors would enter the EU market at zero duty from the date the FTA comes into force.

This, he suggested, would significantly boost competitiveness and export potential for India’s firms, including those in textiles, leather, footwear, and other key areas. In return, India is offering duty elimination or reduction on 92.1 per cent of its tariff lines, covering 97.5 per cent of EU exports, with 49.6 per cent experiencing immediate elimination and 39.5 per cent phased out over five, seven and ten years. Jaishankar framed these reciprocal commitments as a balanced approach that enhances mutual benefits and fosters deeper integration.

Jaishankar asserted that the FTA will catalyse growth in agriculture and processed foods through preferential access for products such as tea, coffee, spices, grapes, gherkins, cucumbers, dried onion, and fresh fruits and vegetables, while emphasising that sensitive sectors like dairy, cereals, poultry and soymeal will be prudently safeguarded.

He noted that product-specific rules of origin align with existing supply chains, allow self-certification, and include special flexibilities for MSMEs, including quotas for shrimps, prawns and downstream aluminium products. These features, he argued, are designed to reduce red tape and ease compliance for smaller players entering European markets.

In the services domain, the EU has offered broader commitments across 144 sub-sectors, including IT/ITeS, professional services, education and business services. India, in turn, has opened 102 sub-sectors covering EU priorities such as telecommunications, maritime, financial and environmental services. Jaishankar described the services framework as a crucial complement to goods trade, expanding opportunities for Indian service providers and enhancing the two-way exchange of expertise and capabilities.

A notable element of the agreement is the establishment of a robust mobility framework for Indian professionals. The framework covers intra-corporate transferees, contractual service suppliers and independent professionals across dozens of sub-sectors, with commitments to conclude social security agreements within five years.

Jaishankar framed mobility as a key enabler for deeper economic integration, allowing skilled workers to contribute to and benefit from the EU market while supporting Indian companies' talent flows and project execution capabilities.

The agreement also recognises and protects India’s traditional knowledge through the Traditional Knowledge Digital Library (TKDL) and strengthens intellectual property protections in line with TRIPS.

It enhances cooperation on sanitary and phytosanitary measures (SPS) and technical barriers to trade (TBT) through digitisation and mutual recognition, reflecting a focus on quality assurance, safety standards and consumer protection. Jaishankar pointed to these provisions as essential safeguards that bolster confidence on both sides while supporting innovation and high-value manufacturing.

Another important dimension highlighted was the potential for advanced sectors such as engineering goods, marine products, leather and footwear, gems and jewellery, textiles and apparel, plastics and rubber, chemicals, medical instruments and minerals to realise sectoral gains.

Tariff elimination or significant reductions are expected to unlock access to large EU import markets and generate substantial employment opportunities across India, reinforcing the FTA’s capacity to stimulate growth across multiple pillars of the economy.

The external affairs minister also stressed the broader strategic significance of the partnership beyond commerce. He framed the India-EU FTA as a platform for convergences in defence, security, climate action, technology collaboration and talent flows.

He expressed optimism that the India-EU Forum will foster more conversations and greater convergences between the two sides, helping to translate economic gains into tangible security, climate and technological cooperation. Jaishankar’s remarks came just ahead of the one-week anniversary of the sign-off on negotiations, marking a pivotal milestone in the evolving relationship between India and the European Union.

Based On ANI Report