New Delhi, May 8, 2026: The European Union has urged India to expand investment liberalisation measures within the recently concluded India European Union Free Trade Agreement while also pressing for an early finalisation of a separate Investment Protection Agreement to strengthen investor confidence and deepen long term economic engagement.
Speaking at a Federation of European Business in India event, European Union Ambassador to India Hervé Delphin emphasized that although the FTA marks a historic milestone, key investment related areas remain unfinished. He pointed out that the current agreement lacks a dedicated chapter on investment liberalisation in non services sectors, an omission he believes should be addressed through future review mechanisms.
Delphin stated that European businesses are prepared to significantly expand their presence in India, but greater policy openness and investor friendly reforms are necessary to unlock that potential. He noted that both existing European companies and prospective investors require more favourable business conditions to support large scale capital commitments.
He also called for swift completion of the ongoing Investment Protection Agreement negotiations, describing it as essential for creating a reliable legal framework that would safeguard investors and encourage deeper commercial participation between India and the EU.
The India EU FTA, politically concluded in January 2026 after years of negotiations, is currently undergoing legal scrutiny of its extensive text and is expected to be operational by early 2027, subject to ratification procedures. The deal is regarded as one of India’s most significant global trade arrangements, covering a combined market of nearly two billion people and a substantial share of global GDP.
EU officials believe that strengthening the agreement through expanded investment provisions could further accelerate manufacturing, services, and strategic economic cooperation, making the partnership more comprehensive in the years ahead.
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