India’s long-pending Free Trade Agreement (FTA) with the European Union has been concluded after nearly 17 years of negotiations, with Union Minister of State for Commerce and Industry Jitin Prasada highlighting technology transfer, manufacturing and innovation as important drivers of India’s future growth.Speaking about the agreement, Prasada said India was able to conclude the India-EU FTA on equal terms while protecting its economic interests. He also stressed the importance of using trade agreements to support domestic manufacturing and strengthen India’s position in global value chains.Key HighlightsIndia and the European Union concluded their FTA negotiations after nearly 17 years.Jitin Prasada said the agreement was concluded on equal terms.Technology transfer and domestic manufacturing were highlighted as key growth areas.The pact is expected to expand India's access to the European market.Cooperation in technology, AI and advanced manufacturing could support future growth.The agreement is part of India's broader strategy to expand global trade and exports.India-EU FTA Concluded After 17 YearsNegotiations for the India-EU FTA had continued for years before the agreement was concluded in January 2026.The pact is significant because the European Union is one of India's largest trading partners and offers access to a large consumer market. The Indian government has described the agreement as an important step towards integrating Indian businesses more deeply into global value chains.Prasada said the long negotiation process allowed India to protect its interests while securing greater market access for Indian exporters.Technology Transfer Seen as Key to GrowthA major focus of Prasada's remarks was technology transfer.He said India's future growth will depend not only on increasing exports but also on strengthening domestic capabilities in advanced technologies, manufacturing and innovation.Technology partnerships with European companies could help Indian industries improve productivity, develop new products and participate in higher-value segments of global supply chains.India and the EU have also been expanding cooperation in areas such as artificial intelligence, semiconductors, clean technologies, quantum technologies, 6G and other emerging sectors through their broader Trade and Technology Council engagement.Focus on Manufacturing and InnovationThe FTA comes as India continues to focus on increasing domestic manufacturing and attracting long-term investment.Prasada has previously highlighted technology transfer and domestic value addition as important benefits of international economic partnerships. In a parliamentary response on the India-EFTA agreement, he noted that foreign investment can contribute to technology transfer, strategic-sector development, innovation and employment.The same approach is relevant to India's wider trade strategy, where market access is increasingly being linked with manufacturing capabilities and investment.What Does the India-EU FTA Mean for Indian Businesses?The agreement is expected to provide Indian exporters with improved access to the European market across several sectors.Labour-intensive industries such as textiles, apparel, leather and footwear, along with engineering goods, pharmaceuticals and other manufacturing segments, are among the areas expected to benefit from greater market access.For Indian companies, lower trade barriers could create opportunities to increase exports, attract investment and develop stronger links with European supply chains.At the same time, greater market access will also increase competition in the Indian market as European products and companies gain improved access.India-EU Trade and Technology PartnershipThe FTA is part of a broader India-EU relationship that extends beyond merchandise trade.India and the EU have been working together on digital technologies, clean energy, research, advanced manufacturing and resilient supply chains. The third India-EU Trade and Technology Council meeting in July 2026 also focused on AI, semiconductors, quantum technologies, 6G and clean technologies.These areas could become increasingly important as India seeks to move towards technology-intensive manufacturing and higher-value exports.India's Wider FTA StrategyThe India-EU agreement is also part of India's broader effort to diversify export markets and deepen economic partnerships.The government has said India has concluded or advanced several major trade agreements in recent years, while negotiations with other partners continue. The strategy is aimed at expanding market access, strengthening exports and creating more predictable conditions for Indian businesses.For India, the challenge now will be turning the agreement into actual gains for exporters, manufacturers, workers and businesses through higher investment, technology adoption and stronger global integration.
