India-EU FTA: An Absolute Game Changer for Trade and Defence
EU Ambassador Jean-Eric Paquet says the India-EU Free Trade Agreement will create a single economic space and boost defence industry cooperation.
The proposed Free Trade Agreement (FTA) between India and the European Union is poised to become an absolute game changer for both regions, according to the European Union Ambassador to India, Jean-Eric Paquet. Speaking at a high-profile event in New Delhi, Paquet emphasized that the agreement holds the potential to transform trade, investment, and supply chain resilience between the two giants.
A Vision for a Single Economic Space
Addressing the Annual Session and Champion Awards 2026 of the Society of Indian Defence Manufacturers (SIDM), Paquet outlined a clear timeline for the landmark deal. He stated that the goal is to conclude the FTA negotiations by the end of 2026, with the intention of bringing the agreement into force during 2027.
The Ambassador suggested that the FTA would not act alone. Instead, it is expected to work in tandem with a pending Investment Protection Agreement. Together, these two frameworks could create a seamless economic space spanning India and Europe. This unified space aims to:
- Enable freer trade across borders.
- Strengthen and make supply chains more resilient.
- Reduce strategic dependencies on third parties.
- Foster joint technological development.
Strengthening Defence and Economic Security
Beyond mere commerce, the partnership is shifting toward deeper strategic alignment. Paquet noted that the current geopolitical landscape has forced a realization among leaders, including Prime Minister Narendra Modi, that economic ties must expand into security and defence cooperation.
The Ambassador highlighted the India-EU Security and Defence Partnership, established earlier this year, as a "remarkable step." This framework allows for ministerial-level dialogue and provides a platform for the defence industries of both regions to engage more productively. While India has a long history of purchasing European defence equipment, Paquet noted that more EU member states are now actively developing industrial-defence relationships with Indian counterparts.
Addressing European Capability Gaps
The urgency of these partnerships is underscored by the ongoing Russia-Ukraine conflict. Paquet pointed out that the war remains a massive security challenge for Europe, with civilian casualties continuing due to Russian strikes. To combat these threats, European leaders have committed to mobilizing €800 billion to close defence capability gaps by 2030.
As Europe ramps up its defence investment to support both its own militaries and Ukraine, the need for reliable global partners has become paramount. Paquet suggested that the synergy between India’s sovereignty and Europe’s strategic autonomy will be reinforced through these growing economic and security ties.