India-EU Trade Deal: Game-Changer on the Horizon?

The EU and India have confirmed that after nearly twenty years of informal negotiations, they have finally settled on a Comprehensive Trade Agreement (TA). Commerce Minister Piyush Goyal has just finished his meetings in Brussels, and it seems that a "substantial" FTA is on its way by early 2026. No further delays will occur as occurred with the previous unsuccessful negotiations that took place between 2007-2013. What is the rush? Let me clarify.

Reasons to Hurry: Geopolitics and Business

The trade war between the United States and China has made the world unstable. With US tariffs impacting all nations, and China controlling the global supply of rare earth minerals (the byproduct of which allows for the manufacturing of electronics like cell phones, automotive parts, etc.), the EU is in a panic over the impact of these developments on the automotive industry. India has stepped up. IREL, our state-owned mine of neodymium, is the largest supplier of this mineral in India, providing millions of kilograms annually. The EU has released a new Critical Raw Materials Act, whereby India will be viewed as a key ally to Friendshore sourcing of critical raw materials away from China. French President Macron has openly stated that the world's industrial heart is being threatened by China's rise in Europe — and he is very worried!

In addition, both sides are looking for strategic and dependable partners. With a large population of skilled workers in India (many of whom are STEM workers currently facing H-1B visa issues in the United States) and the need for a skilled workforce, it will be mutually beneficial to both sides.