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After nearly two decades of stalled negotiations, the India-EU free trade agreement has gained fresh momentum, driven as much by shifting geopolitics as by policy compromises on both sides, according to Gulshan Sachdeva, professor and Jean Monnet Chair at the Centre for European Studies at Jawaharlal Nehru University.
“The sudden geopolitical circumstances have clearly facilitated the push to conclude the deal now,” Sachdeva said.
Talks began in 2007, stalled in 2013 over differing ambitions, and did not resume until 2022. The EU pushed for a deep, comprehensive agreement, while India preferred a gradual approach, he said.
Sachdeva said recent trade deals India signed with countries such as the UK and Australia created templates that made compromise easier, particularly on sensitive issues such as labor standards, sustainability, and environmental clauses.
“Earlier India was quite allergic to these issues,” Sachdeva said. “Now they’ve learned how to accommodate them without taking strict legal commitments.”
He added that the timing carries strong political symbolism as global trade norms come under strain, especially with the US pushing for a different kind of trading regime around the world.
“When the global trading system is almost in serious trouble, a deal between the EU and a large growing economy like India sends a message that there are still countries that believe in rules-based trade,” he said. “It also signals there are alternatives beyond the US.”
On domestic concerns in India, Sachdeva said there may be some worry about opening the automobile sector. At the same time, he noted that Indian companies want more opportunities in the financial sector and IT services, which would support mobility and other areas. “So overall, I think it has to be balanced,” Sachdeva told DW.