India–European Union Trade Agreement: Utility, Strategic Role, and Feasibility – A Critical Study

Archana Vasantrao Umarkar

India–European Union Trade Agreement: Utility, Strategic Role, and Feasibility – A Critical Study

Author(s)	Dr. Archana Vasantrao Umarkar
Country	India
Abstract	The India–European Union (EU) Trade Agreement, commonly referred to as the India–EU Free Trade Agreement (FTA) or Broad-based Trade and Investment Agreement (BTIA), represents one of the most significant prospective trade partnerships in the contemporary global economy. India and the EU together account for nearly one-quarter of the world’s population and a substantial share of global GDP and trade flows. In an era marked by economic uncertainty, geopolitical realignments, supply chain disruptions, and the resurgence of protectionist tendencies, this agreement carries immense economic, strategic, and diplomatic importance. This study critically examines the utility, strategic role, and feasibility of the India–EU Trade Agreement. It aims to evaluate whether the proposed agreement can serve as a catalyst for sustainable growth, industrial competitiveness, technological advancement, and geopolitical cooperation. The paper situates the agreement within the broader context of India’s trade liberalization strategy and the European Union’s pursuit of diversified and resilient economic partnerships, particularly in light of shifting global trade dynamics, such as the rise of China, the Russia–Ukraine conflict, and the reconfiguration of global value chains. The utility of the agreement lies in its potential to enhance market access, reduce tariff and non-tariff barriers, promote investment flows, and foster cooperation in emerging areas such as digital trade, green technology, renewable energy, and intellectual property rights. For India, deeper access to the EU market—one of the world’s largest consumer markets—offers significant opportunities for export expansion, employment generation, technology transfer, and integration into high-value global supply chains. For the EU, India represents a rapidly growing market, a major manufacturing hub, and a strategic partner in the Indo-Pacific region. From a strategic standpoint, the agreement transcends economic considerations and enters the realm of geopolitics. It strengthens India–EU relations in the context of shared democratic values, rule-based international order, climate commitments, and regional security cooperation. The partnership also provides both sides with an opportunity to diversify trade and reduce overdependence on a limited set of global partners, thereby enhancing economic resilience and strategic autonomy. However, the feasibility of the agreement remains complex and contested. Negotiations have faced repeated delays due to divergent priorities, regulatory frameworks, and development levels. Key challenges include disagreements over market access in agriculture and automobiles, data protection standards, labor and environmental regulations, intellectual property rights, investment protection mechanisms, and regulatory harmonization. India’s concerns about protecting domestic industries and policy space often conflict with the EU’s emphasis on high standards and regulatory convergence. This study adopts a critical analytical approach to assess both the opportunities and constraints associated with the agreement. It examines internal economic structures within the EU, the evolving nature of India’s trade policy, and the broader international trade environment. The paper argues that while the agreement is both desirable and strategically significant, its success depends on mutual flexibility, phased liberalization, institutional cooperation, and a development-sensitive framework. Ultimately, the India–EU Trade Agreement has the potential to emerge as a model of inclusive, sustainable, and strategic trade cooperation between developed and emerging economies. However, realizing this potential requires balancing economic efficiency with social equity, national interests with global responsibilities, and immediate gains with long-term development goals. This study concludes that the agreement is feasible, provided it is grounded in pragmatism, mutual trust, and a shared vision for a stable, prosperous, and rules-based international economic order.
Keywords	 India–EU Trade Agreement  Free Trade Agreement (FTA)  Strategic Partnership  Economic Integration  Global Value Chains  Trade Liberalization  Feasibility Analysis
Field	Arts
Published In	Volume 7, Issue 1, January-February 2026
Published On	2026-02-07

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India–European Union Trade Agreement: Utility, Strategic Role, and Feasibility – A Critical Study

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