India-EU Trade Pact: A Strategic Shift in Global Economic Posture

• The India-EU Free Trade Agreement (FTA) concludes decades of negotiations, marking a significant moment for both parties.
• Announced by PM Modi and Ursula von der Leyen, the pact emphasizes collaboration amidst geopolitical fragmentation and evolving global economy.
• The agreement reflects India's shift from defensive trade policies to targeted bilateral arrangements, following deals with UAE, Australia, and the UK.
• It addresses disadvantages for Indian exporters in sectors like textiles, apparel, and gems, while offering the EU diversified supply chains.
• The pact carefully handles sensitive sectors like agriculture and dairy, with phased liberalization and focus on services and regulatory alignment.

Why It Matters: The India-EU FTA signifies a strategic evolution in India's trade policy, fostering global economic integration and resilience.