India-EU FTA Nears Finalization Amidst Trump Era Uncertainty

• German Chancellor Friedrich Merz and French President Emmanuel Macron emphasize India as a key partner, with India's EAM S Jaishankar predicting stronger ties by 2026.
• The India-EU Free Trade Agreement (FTA), stalled since 2013, saw rapid acceleration in 2025, driven by Europe's need to diversify alliances due to Trump's unpredictable policies.
• Europe seeks to reduce its dependence on the US and China, viewing India as an indispensable partner in a changing global strategic environment.
• India, the world's 4th largest economy with rapid GDP growth, offers a burgeoning market and skilled workforce, making it an attractive alternative for Europe.
• The FTA will boost India's economy by attracting European capital and technology, enhancing competitiveness, and upgrading its industrial strength.

Why It Matters: Europe is fast-tracking an FTA with India, driven by Trump's unpredictability and China's dominance, making India a crucial partner.