The impending India–European Union Free Trade Agreement is one of the most comprehensive trade agreements India has concluded to date. The scale of the agreement lends credibility to the description. It brings together two economic blocs representing nearly two billion people and close to a quarter of global GDP. More significantly, it comes at a moment when geopolitical tensions, supply chain fragmentation, and rising protectionism are reshaping global trade.

The agreement is not merely a commercial arrangement. It reflects a strategic recalibration by both India and the European Union. For Europe, it is part of a broader effort to diversify supply chains and reduce excessive dependence on China. For India, it signals a shift towards deeper engagement with rule-based global trade while positioning itself as a reliable manufacturing and economic partner.