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Beyond the FTA: India–Europe Partnership

PAFI - 24 September 2026 - 12-21-33 PM.mp4 · 1:01:18 · 6 speakers

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Summary

The session examined how the India–EU FTA could support a broader strategic partnership spanning trade, investment, technology, supply chains, defence, AI, sustainability and people-to-people links. Speaker 2 framed the FTA as an enabler rather than an end state, stressing the need for businesses—especially SMEs—to convert its potential into practical outcomes.

Speaker 3 described recent agreements with European partners and positioned the India–EU FTA as a major development following a long negotiation process. Speaker 3 cited preferential access on 97% of EU tariff lines, covering 99.5% of India’s export value, and argued that the next priority is making the agreement operational and helping companies use it effectively.

Speaker 4 said Europe and India have strong economic complementarity and that the partnership is expanding beyond commerce through a political and security partnership. Speaker 4 emphasized Europe’s single market, existing European investment in India, and the investment and supply-chain potential created by manufacturing in India, importing intermediates, and re-exporting to Europe.

Speaker 1 argued that the FTA underpins a larger strategic shift, supported by already substantial growth in India–Europe trade and investment. Speaker 1 highlighted opportunities in global value chains, clean technology, critical technologies, AI, research, defence, energy and connectivity, while warning that FTA benefits are not automatic and require awareness, capacity building and institutional support.

On AI, Speaker 1 advocated an India–Europe approach based on openness, accessibility, inclusion, public purpose, privacy and balanced regulation. The discussion referenced cooperation involving DEPA and the French health data hub, as well as the India–EU Trade and Technology Council. Defence cooperation was presented as another major area for expanded co-development, technology sharing and integrated supply chains.

Audience questions focused on investment de-risking, the relationship between European sovereignty and diversification agendas, whether the India–Europe alignment is durable, a possible high-level global value chain task force, and direct dialogue between Indian producers and European consumers. Speakers supported diversification, acknowledged India’s need to further improve ease of doing business, and indicated that ITPO and the Department of Commerce are pursuing FTA-awareness, market-mapping and trade-support initiatives.

Key takeaways

The FTA was consistently characterized as an enabler of a wider India–Europe strategic partnership, not a self-executing outcome.
The speakers emphasized investment, manufacturing, supply-chain integration and technology collaboration alongside tariff reductions.
SMEs will require targeted awareness, partner-finding, market-navigation and intellectual-property support to benefit from the FTA.
AI cooperation was presented as a promising field for open, trusted, public-interest-oriented collaboration between India and Europe.
Defence cooperation already has a substantial India–Europe base and may expand through co-design, co-development, technology transfer and supply-chain partnerships.
ITPO and the Department of Commerce were reported to be undertaking FTA-readiness and exporter-support measures, including awareness programmes and a district-wise opportunity map.

Key moments

Panel introduced
Opening announcement introduces the India–Europe partnership session and participants.
Welcome and strategic framing
Speaker 2 presents the FTA as a foundation for a wider economic, technological and people-centred partnership.
FTA context and figures
Speaker 3 outlines recent European trade agreements, FTA coverage and India–EU trade context.
European investment perspective
Speaker 4 emphasizes the European single market, investment and supply-chain potential.
India’s strategic perspective
Speaker 1 describes the FTA as part of a wider India–Europe strategic shift.
AI and MSME implementation
Speaker 1 addresses open AI collaboration and planned FTA-readiness support.
SMEs and defence cooperation
Speaker 4 discusses SME support and both panelists describe defence collaboration opportunities.
Audience Q&A
Questions address investment conditions, European sovereignty, relationship durability and global value chains.
Closing emphasis on implementation
Speaker 2 says agreements are only the starting point and require government–industry action.
Session closes
Speaker 1 thanks participants and announces lunch.

Decisions made

No explicit final decision was identified.

Proposals & suggestions (not confirmed decisions)

India should consider a high-level global value chain task force, potentially under the Prime Minister or Deputy Prime Minister, to attract FDI, provide clearances or packages, and support manufacturing investment. — proposed by Speaker 1. Outcome: Speaker 1 called it a “great idea” and said there is a need for high-level attention, but no decision was confirmed.
Create a direct dialogue platform between Indian producers and European consumers, and vice versa, to reduce information gaps in trade. — proposed by Speaker 1. Outcome: Speaker 1 said a larger importer–exporter platform is already being built, but did not explicitly confirm the proposed dialogue format.
Europe should compile and communicate its existing defence and security cooperation with India, especially contributions to Atmanirbhar Bharat and integrated supply chains. — suggested by Speaker 1. Outcome: No explicit response or decision.

Action items

Action	Owner	Deadline
Conduct nationwide FTA awareness, education and capacity-building activities for businesses and stakeholders.	Speaker 1	Not specified
Develop a district-wise opportunity map with the Department of Commerce and ITPO.	Speaker 1	Not specified
Set up and staff a large ITPO trade development and promotion wing to support MSMEs.	Speaker 1	Not specified
Establish ITPO trade offices in Europe as an initial step, to help MSMEs enter European markets and use FTAs.	Speaker 1	Not specified
Make embassies FTA-ready through awareness of technical issues and support for related challenges.	Speaker 1	Not specified
Seek to begin an EU–India trade forum involving regulators, policymakers, exporters, importers and MSMEs.	Speaker 1	by next year
Build a digital platform connecting at least 100,000 importers with exporters and enabling exhibitions, meetings, market navigation and transactions.	Speaker 1	by next year

Topics discussed

Session opening and India–EU partnership context

to 00:06:42 Speaker 1, Speaker 2

Speaker 1 introduced the panel and Speaker 2 welcomed participants, positioning the session as PAFI’s first EU-focused panel. Speaker 2 outlined a broader agenda around trade, investment, innovation, resilient supply chains, sustainability and people-to-people connections.

FTA scale, timeline and economic context

to 00:12:52 Speaker 3

Speaker 3 reviewed recent European trade developments, FTA-related figures, India–EU trade data and the geopolitical context, then asked what businesses should expect once the FTA becomes operational.

European investment and Denmark–India opportunities

to 00:20:42 Speaker 3, Speaker 4

Speaker 4 discussed Europe’s interest in deeper partnership with India, the European single market, the investment implications of the FTA, Danish corporate presence in India and how the FTA could reinforce the Denmark–India Green Strategic Partnership.

Strategic shift, technology and FTA implementation

to 00:38:24 Speaker 1, Speaker 3

Speaker 1 described the FTA as part of a broader strategic shift, cited trade and investment growth, identified future-shaping sectors, discussed AI and data collaboration, and outlined planned support for MSMEs and FTA readiness.

SMEs and defence cooperation

to 00:47:17 Speaker 1, Speaker 3, Speaker 4

Speaker 4 addressed SME participation, Danish company activity and IP support. Speakers 4 and 1 discussed existing and prospective India–Europe defence cooperation, including technology transfer, local production, co-development and supply chains.

Audience questions: investment, sovereignty, durability and GVCs

to 00:59:11 Speaker 1, Speaker 3, Speaker 4, Speaker 5, Speaker 6

Audience members raised questions on de-risking investment, Europe’s sovereignty and diversification agendas, the structural durability of India–Europe cooperation, a possible GVC task force, and producer–consumer dialogue platforms. Speakers responded on diversification, predictability, ease of doing business, GVC coordination and a planned digital trade platform.

Closing remarks

to 01:01:03 Speaker 1, Speaker 2, Speaker 3

Speaker 2 closed by emphasizing that agreements are a starting point and that outcomes depend on effective government–industry implementation. Speaker 1 thanked participants and announced lunch.

Important questions

What can businesses expect from the FTA once it becomes operational, and what direction will the relationship take? — asked by Speaker 3
Answered Speaker 4 said the FTA should facilitate trade but is especially significant for investment, local manufacturing, access to intermediate goods, re-exporting to Europe and integration into high-value supply chains.
How will the FTA affect the Denmark–India Green Strategic Partnership? — asked by Speaker 3
Answered Speaker 4 said the government-to-government partnership and FTA are distinct, but the FTA can add stronger technological and commercial dimensions and reinforce the existing platform.
Is there scope for an India–EU AI partnership? — asked by Speaker 3
Answered Speaker 1 said there is substantial scope around open, accessible and inclusive AI; relevant examples included DEPA’s reported French health-data pilot, trusted cross-border data corridors, the India–EU Trade and Technology Council, and existing technology links.
How enthused will MSMEs and smaller trading companies be about the FTA? — asked by Speaker 3
Answered Speaker 1 said the FTA is an enabler rather than an automatic gain and described awareness, training, opportunity mapping, trade offices, embassy readiness and a prospective trade forum as support measures.
How can smaller companies benefit from the FTA? — asked by Speaker 3
Answered Speaker 4 said SMEs need awareness, handholding, partner-finding and IP support; large companies may also bring suppliers with them as they invest and manufacture abroad.
How do European sovereignty and diversification agendas coexist, and how can Indian companies navigate them? — asked by Speaker 1
Answered Speaker 4 said Europe needs both indigenous capability and diversification; Europe cannot do everything alone, and India can be an important partner in reducing dependence on a single country.
Is the current India–Europe bonhomie structural, or could the catalysts reverse? — asked by Speaker 6
Answered Speaker 4 said the underlying economic relationship has long been strong and that EU agreements are predictable once concluded. Speaker 1 added that diversification supports sovereignty and said the broad approach toward India is unlikely to change.
Should India have a high-level GVC task force to attract European manufacturing FDI? — asked by Speaker 1
Answered Speaker 1 called it a great idea, cited strategic top-level approaches in electronics and semiconductors, and said high-level attention is needed, but did not confirm creation of such a task force.
What is needed from India to de-risk and unlock Norwegian and European investment, beyond capital injection? — asked by Speaker 5
Partially answered Speaker 4 said India must continue improving ease of doing business to reap full benefits, while its scale and domestic market are important advantages. The question was not otherwise addressed in detail.

Important numbers & facts

10/01/2025 — Speaker 3 said the Trade and Economic Partnership Agreement entered into force with Switzerland, Norway, Iceland and Liechtenstein.
$100,000,000,000 over fifteen years — Speaker 3 said the TEPA included an investment commitment to India over fifteen years; Speaker 5 referred to the same EFTA investment-promotion objective.
1,000,000 direct jobs — Speaker 3 said the TEPA investment commitment was tied to 1,000,000 direct jobs for India.
01/27/2026 — Speaker 3 said the India–EU FTA became real at the beginning of the year on this date.
2007 — Speaker 3 said India–EU FTA negotiations were launched in 2007.
2013 — Speaker 3 said the India–EU FTA process was frozen in 2013.
2022 — Speaker 3 said the India–EU FTA process was revived in 2022.
97% of EU tariff lines — Speaker 3 said the FTA gives preferential access on this share of EU tariff lines.
99.5% of India’s export value — Speaker 3 said the preferential access covers this share of India’s export value.
2,000,000,000 people — Speaker 3 said the agreement creates a market of 2,000,000,000 people.
a quarter of global GDP — Speaker 3 said the agreement covers a market accounting for a quarter of global GDP.
€118,000,000,000 in 2025 — Speaker 3 cited India–EU trade in 2025.
roughly $220,000,000,000 annually — Speaker 3 gave this approximate India–EU goods-and-services trade figure.
2% of the EU’s trade — Speaker 3 said India–EU trade is only this share of EU trade, indicating further opportunity.
more than 250 Danish companies — Speaker 4 said more than 250 Danish companies are present in India.
70% of global trade — Speaker 1 said global value chains account for 70% of global trade.
2,500 restrictive trade measures last year — Speaker 1 cited the number of global restrictive trade measures last year.
five times the 2015 level — Speaker 1 said restrictive trade measures last year were five times their 2015 level.
13 out of the first 14 supercomputers in India — Speaker 1 said these were fabricated in Chennai with Atos, described as a French company.
between 100,150 people — Speaker 4 said Danish subsidiaries employ “somewhere between 100,150 people” in India; the phrasing was unclear in the transcript.
90% of Danish companies — Speaker 4 said 90% of Danish companies are small and medium-sized.
60 Indian companies — Speaker 4 said 60 Indian companies attended Tech BBQ in Copenhagen.
60% of coastal radars in India — Speaker 4 said this share comes from Danish companies.
60%–65% production value — Speaker 1 said Europeans are more willing to undertake this level of production value in India in the defence context.
at least 100,000 importers — Speaker 1 said a planned platform would seek to include at least 100,000 importers alongside exporters.
by next year — Speaker 1 said an EU–India trade forum is hoped to start by next year, and a broader importer–exporter platform is hoped to be operating by next year.

Speaker highlights

Speaker 1

Main points

Introduced the panel and later contributed substantive remarks on the India–Europe FTA, AI, MSME support, defence and GVCs.
Characterized the FTA as an underpinning of a wider strategic shift rather than merely a trade arrangement.
Argued that trade and investment links with Europe are already deeper than commonly recognized.
Outlined reported plans for FTA-awareness programmes, district-level opportunity mapping, ITPO trade support and a future India–EU trade forum.
Advocated India–Europe AI collaboration based on open architecture, public good, privacy, safety and appropriate regulation.
Described substantial India–Europe defence cooperation and advocated more co-design and co-development.

Positions

FTA gains are not automatic and require implementation, capacity building and business support.
India and Europe have significant scope to cooperate in AI, clean energy, defence, critical technology and global value chains.
European partners are viewed as more willing to share technology and undertake co-design and co-development when trust is established.
A high-level focus on attracting global value chains to India is needed.

Commitments

Reported that the Department of Commerce and ITPO are conducting a nationwide FTA awareness, education and capacity-building programme.
Reported plans to develop a district-wise opportunity map with the Department of Commerce and ITPO.
Reported that ITPO is building a trade development and promotion wing and intends to establish ITPO trade offices in Europe.
Stated a hope to begin an EU–India trade forum by next year.
Stated that a large platform connecting importers and exporters is being built and is hoped to be operational by next year.

Questions raised

How can India and Europe collaborate on an open architecture to train AI models for relevant use cases and broader deployment?
Can India establish a high-level mechanism focused on shifting global value chains to India?

Speaker 2

Main points

Delivered welcome remarks and set the strategic context for the session.
Presented the FTA as broader than market access, with implications for technology, innovation, supply chains, value creation and people-to-people connections.
Closed the session by emphasizing implementation by governments and industry.

Positions

The desired India–EU partnership should progress from synergies to scale and sustainability.
European firms should participate in India’s transformation through investment, R&D, skills and co-innovation, while Indian firms should treat Europe as a sustained technology and expansion partner.
Agreements are starting points; results depend on translating intentions into action.

Questions raised

What kind of India–EU partnership should the FTA enable?
Can the FTA become a platform for technology partnerships, innovation, resilient supply chains and value creation?

Speaker 3

Main points

Moderated the session and supplied economic, trade and geopolitical context.
Asked speakers about the FTA’s business implications, Denmark–India green partnership, AI, SMEs, defence and investment.
Summarized the discussion as identifying opportunities in defence, AI and MSME participation.

Positions

Europe should be viewed both collectively and through its distinct member-state relationships.
The FTA’s value lies in what follows operationalization: business utilization, investment and broader strategic cooperation.

Questions raised

What can business expect from the FTA and what direction will the relationship take?
How will the FTA affect the Denmark–India Green Strategic Partnership?
Is there scope for an India–EU partnership in AI?
How will MSMEs and smaller trading companies benefit?
How do defence and AI fit into the new India–EU relationship?

Speaker 4

Main points

Explained that Europe seeks stronger partnerships amid geopolitical and geoeconomic volatility and sees India as a major complementary partner.
Stressed Europe’s single market and existing position as a major investor in India.
Argued that the FTA can increase investment, facilitate trade, improve access to intermediate inputs and support India’s integration into high-value supply chains.
Discussed Danish company presence, SME support, intellectual-property awareness, startup links and defence cooperation.
Responded that European sovereignty and diversification are complementary rather than contradictory.

Positions

Investment is likely to be the principal FTA game changer, alongside trade.
SMEs need awareness-building, handholding and local partners to use the FTA.
Europe must develop indigenous capabilities but cannot operate alone; diversification is essential.
India has scale and a large domestic market, but further ease-of-doing-business improvements are needed to maximize FDI.

Speaker 5

Main points

Asked what India needs to do to facilitate and de-risk Norwegian and European investment, including institutional partnerships beyond capital injection.
Noted the EFTA/TEPA investment-promotion objective.

Questions raised

What must India do to unlock investment potential, de-risk investment for Norwegian and European companies, and create institutional partnerships?

Speaker 6

Main points

Asked whether the India–Europe rapprochement is structurally durable or dependent on temporary catalysts.

Questions raised

Is the India–Europe relationship structurally durable if the catalysts that brought the two sides together later operate differently?

Follow-ups

Ensure businesses, especially MSMEs, understand and use FTA provisions through awareness, capacity building and market-entry support. (Speaker 1)
Develop and maintain the proposed district-wise opportunity map for FTA-related trade and investment opportunities. (Speaker 1)
Establish the proposed ITPO trade-support presence in Europe and make embassies FTA-ready. (Speaker 1)
Pursue the proposed EU–India trade forum bringing together regulators, policymakers, exporters, importers and MSMEs. (Speaker 1)
Continue improving ease of doing business to support FDI and investment confidence.
Consider how to provide high-level coordination for India’s global value chain and manufacturing-investment strategy.
Build a trusted, current importer–exporter database and trade platform; keeping data credible and updated was identified as the main challenge. (Speaker 1)
Consider stronger communication of existing India–Europe defence and security cooperation.