India and European nations push for faster FTA launch ahead of Trump’s return

New Delhi aims to seal an FTA with the four-nation EFTA soon, in a move that may give impetus for a similar deal with the larger EU

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A container ship docked at a port in Vallarpadam, in the southern Indian city of Kochi. Photo: Reuters

Published: 5:22pm, 9 Jan 2025Updated: 5:30pm, 9 Jan 2025

India’s drive to finalise a free-trade agreement (FTA) with the four-nation European Free Trade Association (EFTA) could jump-start talks with the larger EU, fuelling optimism that Brussels could lean closer to New Delhi due to the return to the White House of anti-multilateralist Donald Trump and Europe’s trade row with China.

Asked about the status of the agreement with the EFTA last week, Indian Commerce Minister Piyush Goyal said it was “progressing very fast”.

He added there was strong political support for the deal and that it had “cleared an important hurdle” in Switzerland, with implementation expected by the end of 2025.

Observers say Europe is preparing for a more distant relationship with Washington after Trump becomes the next US president, which will spur the region’s efforts to forge closer relations with India.

“From the minister’s statement, it is very clear that the Indian government will be concluding [an FTA with] the EFTA soon. This may provide a greater push for India-EU engagement [for a similar deal],” said T.S. Vishwanath, a principal adviser at international trade consultancy ASL-Legal in New Delhi.

On Tuesday, Indian Prime Minister Narendra Modi issued a statement to congratulate Antonio Costa for becoming President of the European Council.