India’s advancing Free Trade Agreement (FTA) with the European Union is progressing rapidly, positioning New Delhi as a dominant force in global trade while leaving Pakistan visibly concerned. This strategic pact promises duty concessions across textiles, IT, pharmaceuticals, automobiles, and agriculture, supercharging Indian exports in Europe’s vast market.
Boost for Key Sectors
India gains preferential access for over 99% of its exports, slashing tariffs on high-value goods and bolstering ‘Make in India’. Bilateral trade, already surging past €120 billion in 2024, will deepen ties in services worth USD 83 billion, fostering innovation in AI, clean tech, and semiconductors.
Pakistan’s Unease Highlights India’s Edge
Pakistan fears a hit to its exports as India’s competitiveness rises, underscoring New Delhi’s economic momentum and active FTA pursuits with UK, Oman, and New Zealand. Political observers note this anxiety stems from India’s robust international partnerships, amplifying its strategic realignment.
India’s Path Forward
Expected to activate in 2026-27, the deal ensures balanced growth with safeguards for sensitive sectors like dairy and grains. This milestone cements India’s role in a multipolar world, driving inclusive prosperity and supply chain resilience.
