Next steps for Europe-India trade
Long-term talk of deeper Europe-India trade ties is finally accelerating as the mutual value becomes more obvious. This results from common struggles with superpowers US and China, as well as the recognition that the world’s most populous country needs help with its growth and Europe wants to be part of that story. Nonetheless, UK and EU Free Trade Agreements with India are best seen as part of an ongoing process rather than the final outcome. These FTAs are shallow, and there are numerous headwinds such as very different views of the world. This means all governments concerned will need to work hard to see significant economic benefits. The UK-India FTA is expected to come into force this year, with the EU-India equivalent probably at least a year behind. In both cases, their conclusion is still ahead of hopes, since negotiations only really began in 2022, even if building on previously suspended efforts. For India, the economic slowdown during COVID-19 provided an impetus. For the EU and the UK, a large Indian market behind tariff walls was incentive enough. However, it was the turbulence of Trump’s tariffs that provided the extra push to the conclusion. Details of the EU-India FTA are [...]
