India's strategic engagement in Free Trade Agreements (FTAs) with the European Union (EU), the United Kingdom (UK), and the European Free Trade Association (EFTA) reflects its commitment to integrating into the global economy and enhancing trade relations. These agreements aim to reduce tariffs, eliminate trade barriers, and foster investment, promoting economic growth and development.
The negotiations for the India and European Union Free Trade Agreement were initiated in 2007 were stopped in 2013 due to differences in market access and regulatory standards. The discussions were again resumed in June 2022, where both India and the European Union were aiming to finalise the FTA by the end of 2025. The European Union is India’s third-largest Trading Partner, and the FTA is aimed at strengthening this trade relationship and taking it further while also addressing key issues related to trade and investment.