India-EU FTA: A Strategic Reset in a Fragmenting World

• India and the European Union are seriously pursuing a Free Trade Agreement (FTA) after nearly two decades of stalled negotiations, driven by a changing global order and the need for strategic autonomy.
• The renewed urgency is influenced by aggressive US protectionism under President Donald Trump and Europe's realization of overdependence on Washington.
• European Commission President Ursula von der Leyen's description of the deal as "the mother of all deals" and EU leaders attending India's Republic Day symbolize India's rising geopolitical importance.
• Economically, India's textiles, footwear, and pharmaceuticals sectors stand to gain significantly from tariff elimination, while Europe seeks to de-risk supply chains from China and access India's market.
• Challenges remain, including EU demands for auto tariff reductions, India's concerns over the Carbon Border Adjustment Mechanism (CBAM), and sensitivities around agriculture and dairy sectors.

Why It Matters: India and the EU are strategically pursuing an FTA to adapt to a multipolar world and secure economic leverage.