External Affairs Minister S. Jaishankar on Wednesday highlighted the potential global impact of an early conclusion to the India-European Union (EU) free trade agreement (FTA), describing it as a step that could “make a big difference” in stabilising the global economy and reinforcing democratic values. His comments came during a meeting with a key panel from the EU visiting India to advance discussions on the FTA, which both sides aim to finalise within the next two months.

Jaishankar emphasised that maximising convergence between India and the EU through the trade deal could yield broad economic and geopolitical benefits. “Discussed how India & the European Union can maximize convergences and deepen cooperation. This can stabilize the global economy and strengthen democratic forces,” he stated in a social media post. He further added, “The early conclusion of the India-EU FTA can make a big difference to these objectives.”

The minister’s remarks arrive against a backdrop of stalled progress in India-US trade negotiations, where tensions persist due to unprecedented tariffs imposed by the Trump administration, highlighting the strategic importance of concluding the FTA with Europe.

Earlier this year, during a visit by European Commission President Ursula von der Leyen, both leaders reaffirmed their commitment to finalising the trade deal by December 2025. The EU is India’s largest trading partner, with two-way trade in goods reaching $135 billion in 2023-24. The FTA is expected to significantly enhance bilateral trade, expand market access, and strengthen economic ties across multiple sectors.

India and the EU concluded the 14th round of FTA negotiations in Brussels on October 10, 2025. According to officials, the talks focused on finalising a commercially meaningful market access package and resolving remaining technical and regulatory issues. So far, around a dozen chapters of the agreement have been closed, covering areas such as customs and trade facilitation, dispute settlement mechanisms, digital trade, sustainable food systems, small and medium-sized enterprises, competition policy, subsidies, and capital movements. Several other chapters are under discussion, particularly those involving sensitive sectors such as automobiles, steel, and carbon tax.

The European delegation visiting India will also engage with a wide range of stakeholders, including policymakers, industry representatives, and civil society members, to assess the opportunities and challenges posed by the trade negotiations. The visit is seen as an important step in ensuring that both sides can reconcile differing priorities and move towards a mutually beneficial agreement.

Commerce Minister Piyush Goyal visited Brussels earlier this week to discuss the trade pact with top EU officials. Speaking on the visit, EU ambassador Hervé Delphin noted that “substantial progress” has been made in negotiations, adding that both sides remain in continuous dialogue to achieve an agreement by the end of the year.

The India-EU FTA is expected to cover a wide array of economic and trade issues, including the reduction or elimination of tariffs on goods, enhanced market access for services, protection of intellectual property, and measures to facilitate investment flows. The deal is also projected to strengthen regulatory cooperation, promote sustainable trade practices, and support innovation-driven growth in both economies.

Analysts believe that an early conclusion of the FTA could not only boost bilateral trade but also contribute to global economic stability by creating a more predictable and rules-based trade environment. Given the current uncertainties in global markets, such a high-profile agreement between two major economic powers could serve as a stabilising factor for international commerce and investment.

The Indian government has been actively pushing for a comprehensive and balanced agreement that safeguards domestic interests while promoting export opportunities. For the EU, the FTA presents an opportunity to deepen its engagement with one of the fastest-growing large economies in the world, providing European businesses with preferential access to India’s burgeoning market.

Jaishankar’s comments also underline the broader strategic dimension of the India-EU relationship. Beyond trade, both sides have sought to expand cooperation in areas such as technology, climate change, renewable energy, and security, reflecting the EU’s growing recognition of India as a reliable global partner. The FTA is expected to act as a catalyst for this wider strategic partnership, strengthening economic interdependence while supporting shared democratic values and governance norms.

The timeline for finalising the agreement is ambitious. Both sides have set December 2025 as the target for concluding the deal, which will require intensive negotiations and careful resolution of outstanding issues. Officials have indicated that upcoming rounds of discussions will focus on addressing regulatory differences, non-tariff barriers, and other technical matters to ensure smooth implementation of the agreement.

With global trade under pressure from geopolitical tensions, protectionist policies, and supply chain disruptions, the India-EU FTA is seen as a crucial instrument to foster resilience and stability. By creating greater certainty for businesses and investors, the agreement is expected to promote economic growth, job creation, and sustainable development in both regions.

In summary, Jaishankar’s statement underscores the multifaceted significance of the India-EU trade deal. While its primary focus is on enhancing bilateral trade, the FTA is also envisioned as a vehicle for broader global impact, including stabilising the international economy, promoting democratic governance, and advancing shared values. Both sides appear committed to concluding the agreement swiftly, with substantial preparatory work already completed and a clear roadmap for finalising remaining issues.

The successful conclusion of the India-EU FTA would mark a historic milestone in bilateral relations, further positioning India as a key player in global trade and demonstrating the potential of strategic partnerships to address economic and geopolitical challenges on a wider scale.