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India and European Union Economic Relations: Restructuring Growth Trajectories

India-European Union (EU) Free Trade Agreement (FTA) negotiations have resumed significance at a time when the world economic order is undergoing a profound transformation. The forthcoming participation of the President of European Commission, Ursula von der Leyen, and the President of European Council, Antonio Costa, in India’s Republic Day celebrations on January 26, 2026 signals to deepening of diplomatic ties, along with growing strategic and economic partnership, particularly in relation to the ongoing FTA negotiations. The high-level visit coincides with the 16th India-EU Summit scheduled for January 27, 2026, underscoring the growing momentum in bilateral relations.

The European Union (EU) is a supranational economic and political organization representing sovereign European member states. With a single currency, the euro, and a common Schengen visa regime, the EU represents a distinctive model of collective economic power built on cooperation and shared decision-making. It is a representative of 27 European countries; with headquarter in Brussels, Belgium. United Kingdom exited the EU in 2020 following Brexit; while other two major economies, Switzerland and Norway, are not formal members of EU. The EU operates through a multi-layered institutional framework that enable it to function as a single market for goods, services, capital and labour, while allowing members states to retain autonomy over domestic policy domains. Therefore, India-EU FTA negotiations will open the doors for India to 27 European countries simultaneously.

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