When German Chancellor Friedrich Merz landed in Gujarat this week and called for concluding the EU-India free trade agreement (FTA) by the end of January 2026, it signalled more than routine diplomacy. In a world reshaped by sanctions, industrial policy, and supply-chain realignments, Europe's outreach to India is now as strategic as it is geoeconomic. The high-level visit once again highlights that as the United States wavers between protectionism and partnership, New Delhi is seeking to broaden its trade horizons, with Europe emerging as the key pivot.

Europe's courtship of India is driven by mutual interests in economic partnerships. The EU-India FTA is in the final stages of negotiations, with both sides seeking to bridge differences on sustainability standards, digital trade, and labour mobility. For Europe, it is about de-risking supply chains away from China and securing access to a large democratic market. For India, the deal offers access to the EU's high-value consumer base, new technology partnerships, and credibility as a manufacturing and regulatory hub capable of meeting global standards. The stakes are immense: the EU is one of India's largest trading partners, accounting for nearly 12% of its total trade.

Momentum has been built by earlier European deals. The India-UK Comprehensive Economic and Trade Agreement (CETA), signed in July 2025, was New Delhi's first major trade pact with a G7 economy in over a decade. It grants duty-free access for 99% of Indian exports to the UK. The India-EFTA Trade and Economic Partnership Agreement (TEPA) went further, coupling tariff cuts with a USD 100 billion investment commitment over 15 years from Switzerland, Norway, Iceland, and Liechtenstein - an unprecedented investment-linked model. It illustrates how India's trade policy has matured........

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