India–Europe Trade Relations Gain Momentum at CTIL–FICCI Conference on Next-Gen FTAs

India’s growing economic engagement with Europe took centre stage at a high-level conference in New Delhi, where policymakers, industry leaders and trade experts discussed the future of next-generation free trade agreements (FTAs) and their impact on global commerce.

Conference Brings Focus to India–Europe Trade Collaboration

A major conference on “Next-Gen Trade Pacts: Leveraging India’s Partnership with Europe under FTAs” was jointly organised by the Centre for Trade and Investment Law (CTIL) at the Indian Institute of Foreign Trade in collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI). The event, held in New Delhi on May 19, brought together a diverse group of stakeholders including policymakers, legal experts, academicians and business leaders.

The conference served as a platform to deliberate on India’s evolving trade strategy with Europe, particularly in the context of emerging and next-generation FTAs that go beyond traditional tariff reductions.

Key Themes: Market Access, Compliance and Digital Trade

Discussions at the conference revolved around several critical areas shaping modern trade agreements. These included improving market access for Indian exports, enhancing regulatory compliance, expanding services trade and strengthening engagement in the digital economy.

Participants also examined the implications of the European Union’s Carbon Border Adjustment Mechanism (CBAM), a policy tool aimed at reducing carbon emissions by imposing tariffs on imports based on their carbon footprint. The mechanism poses new challenges for Indian exporters, particularly in carbon-intensive sectors.

Industry Leaders Highlight Need for Stronger Trade Infrastructure

During the inaugural session, FICCI Secretary General Anant Swarup emphasised the increasing importance of India’s trade partnerships with European economies. He noted that deeper engagement with Europe is essential for sustaining export growth and integrating into global value chains.

Harish Ahuja, Chairman of FICCI’s Foreign Trade and Trade Facilitation Committee and Managing Director of Shahi Exports, stressed the need to strengthen India’s standards infrastructure. He highlighted the importance of improving testing and certification capabilities, adopting digital compliance tools and building institutional mechanisms to effectively address non-tariff barriers in European markets.

Next-Generation FTAs Go Beyond Tariff Cuts

Professor James J. Nedumpara, Head of CTIL, delivered a keynote address outlining the broader scope of next-generation trade agreements. He explained that modern FTAs are no longer limited to reducing tariffs but also include provisions related to sustainability, digital trade, intellectual property and regulatory harmonisation.

These agreements are increasingly shaping the framework of international trade by addressing complex economic interactions and fostering long-term cooperation between countries.

India–EU FTA Seen as a Major Milestone

Darpan Jain, Additional Secretary in the Department of Commerce and Industry, described the conclusion of negotiations for the India–EU Free Trade Agreement as a significant achievement in India’s economic diplomacy.

According to Jain, the agreement is expected to offer preferential tariff treatment to nearly 99.5% of Indian exports, which could significantly enhance India’s access to European markets. He also highlighted that the FTA would strengthen India’s integration into European value chains and boost trade across both goods and services sectors.

Need for Awareness and Industry Preparedness

FICCI Director General Jyoti Vij underlined the importance of building awareness among businesses about the benefits of FTAs. She stressed that capacity-building initiatives and enterprise preparedness are crucial to ensure that industry stakeholders can effectively utilise these agreements.

Without adequate knowledge and readiness, businesses may fail to fully capitalise on the opportunities created by trade liberalisation.

Thematic Sessions Explore Key Trade Opportunities and Challenges

The conference featured four dedicated sessions focusing on different aspects of India’s trade engagement with Europe:

• Opportunities under FTAs: Exploring how businesses can leverage trade agreements to expand exports.
• Standards and Regulatory Compliance: Addressing technical barriers, including sanitary and phytosanitary (SPS) measures.
• Services Trade and Digital Economy: Examining India’s potential in services exports and digital trade.
• Impact of CBAM: Analysing how carbon-related policies affect Indian industries and exports.

These sessions provided in-depth insights into the challenges and opportunities associated with modern trade frameworks.

Expert Insights on Trade Barriers and Digital Engagement

Experts from CTIL delivered presentations on a range of topics, including leveraging India’s FTAs with the UK, EU and EFTA countries. They also discussed strategies to overcome SPS and technical barriers to trade (TBT), which often hinder market access despite tariff reductions.

The discussions also focused on expanding India’s footprint in services trade, particularly in sectors such as IT, finance and professional services. Additionally, the role of digital platforms in facilitating cross-border trade was highlighted as a key growth area.

Addressing Carbon and Sustainability Challenges

A significant portion of the conference was dedicated to understanding the implications of CBAM and other sustainability-related trade measures. As global trade increasingly aligns with climate goals, Indian industries must adapt to stricter environmental standards.

Participants emphasised the need for proactive strategies to reduce carbon emissions, improve production efficiency and ensure compliance with international environmental regulations.

Conclusion and Way Forward

The conference concluded with a vote of thanks by FICCI Assistant Secretary General Pragati Srivastava, marking the end of a comprehensive dialogue on India–Europe trade relations.

Overall, the event highlighted the growing importance of next-generation FTAs in shaping India’s economic future. By addressing regulatory challenges, enhancing competitiveness and fostering innovation, India can strengthen its position in global trade and deepen its partnership with Europe.