CTIL and FICCI Experts Discuss Future of Next-Generation Trade Agreements with Europe

Experts noted that next-generation trade agreements are becoming more comprehensive and complex, extending beyond traditional customs duties into wider economic governance frameworks.

India's evolving trade and economic partnership with Europe took centre stage at a major conference organised by the Centre for Trade and Investment Law (CTIL), Indian Institute of Foreign Trade, in collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI), held in New Delhi on 19 May 2026.

The conference, titled "Next-Gen Trade Pacts: Leveraging India's Partnership with Europe under FTAs," brought together policymakers, industry leaders, trade experts, legal practitioners and academics to deliberate on the future of India's trade architecture with European economies under emerging Free Trade Agreements (FTAs).

The discussions reflected India's growing focus on strengthening economic diplomacy, expanding global market access and positioning itself more effectively within international value chains through comprehensive next-generation trade agreements.

Focus on India-Europe Trade Relations and Emerging FTAs

The conference highlighted the increasing strategic importance of India's trade partnerships with Europe at a time when global trade systems are undergoing major transformations due to geopolitical shifts, supply chain diversification, digitalisation and climate-linked trade regulations.

Participants examined how India's proposed and ongoing trade agreements with the European Union (EU), the United Kingdom (UK) and the European Free Trade Association (EFTA) could reshape trade flows, investment opportunities and industrial competitiveness.

The event focused not only on tariff reductions but also on broader regulatory and institutional issues that increasingly define modern trade agreements, including:

• Digital trade

• Services mobility

• Regulatory standards

• Sustainability measures

• Carbon-related trade regulations

• Technical barriers to trade

• Supply chain integration

Experts noted that next-generation trade agreements are becoming more comprehensive and complex, extending beyond traditional customs duties into wider economic governance frameworks.

FICCI Highlights Importance of Stronger India-Europe Trade Partnerships

The conference opened with an inaugural session featuring FICCI Secretary General Anant Swarup, who welcomed participants and underlined the growing significance of India's economic engagement with Europe.

He emphasized that Europe remains one of India's most important strategic trade and investment partners and that deeper cooperation under FTAs could create substantial opportunities for Indian businesses and exporters.

Chair of the FICCI Foreign Trade and Trade Facilitation Committee and Managing Director of Shahi Exports Pvt. Ltd., Harish Ahuja, stressed the need for India to strengthen its standards infrastructure and regulatory preparedness to compete effectively in European markets.

He highlighted the importance of:

• Enhancing testing and certification capabilities

• Strengthening standards infrastructure

• Developing digital compliance systems

• Improving institutional support mechanisms

• Addressing non-tariff barriers efficiently

According to Ahuja, Indian exporters must increasingly adapt to evolving European regulatory frameworks in order to maintain competitiveness and improve market access.

CTIL Emphasises Shift Toward Next-Generation Trade Architecture

Professor and Head of CTIL, Dr. James J. Nedumpara, delivered the context-setting address and highlighted the changing nature of global trade agreements.

Dr. Nedumpara, who also serves as India Chair under the WTO Chairs Programme, stated that modern trade agreements are no longer limited to tariff liberalisation but increasingly shape the broader architecture of international trade and economic cooperation.

He noted that India's evolving engagement with Europe reflects a strategic shift toward deeper integration into global value chains and more sophisticated trade frameworks involving services, digital commerce, sustainability and regulatory cooperation.

Experts at the conference observed that such agreements are becoming critical tools for countries seeking to enhance economic resilience and secure long-term access to international markets.

Government Says India-EU FTA Will Be Major Economic Milestone

Delivering the keynote address, Additional Secretary in the Department of Commerce and Industry, Darpan Jain, described the conclusion of India–European Union Free Trade Agreement negotiations as a major milestone in India's economic diplomacy.

He stated that the proposed agreement would provide preferential tariff treatment to approximately 99.5% of Indian exports, significantly improving market access for Indian goods in European markets.

According to Jain, the agreement is expected to:

• Strengthen India's integration into European value chains

• Expand opportunities in goods and services trade

• Reduce non-tariff barriers

• Improve export competitiveness

• Facilitate technology and investment flows

The official noted that closer trade ties with Europe would also support India's broader ambition of becoming a global manufacturing and export hub.

Trade experts believe the India-EU FTA could become one of India's most strategically important trade agreements given the size of the European market and the potential for deeper industrial collaboration.

Industry Preparedness Essential for FTA Benefits

Director General of FICCI, Jyoti Vij, emphasized during the concluding remarks of the inaugural session that trade agreements can only deliver meaningful benefits if industries are properly prepared to utilise them.

She highlighted the importance of:

• Enterprise readiness

• Industry awareness programmes

• Capacity-building initiatives

• Export competitiveness enhancement

• Regulatory compliance support

Experts noted that many Indian small and medium enterprises (SMEs) often struggle to fully utilise trade agreements due to limited awareness of standards, certification requirements and procedural complexities.

Improving industry preparedness is therefore viewed as essential for maximising the benefits of future trade pacts.

Conference Explores Key Trade Challenges and Opportunities

The conference featured four thematic sessions examining major issues shaping India-Europe trade relations.

Opportunities Under India's Trade Agreements with Europe

Participants discussed how FTAs with the EU, UK and EFTA could create new export opportunities and improve India's integration into global production networks.

Standards and Regulatory Compliance

Experts examined the growing importance of sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT), which increasingly influence market access for agricultural and industrial products.

Services Trade and Digital Economy

Discussions focused on expanding India's services exports and digital economy engagement with European markets, particularly in areas such as IT services, fintech, consulting and digital commerce.

Carbon Border Adjustment Mechanism (CBAM)

Participants analysed the implications of Europe's Carbon Border Adjustment Mechanism, which is expected to impact carbon-intensive exports by imposing climate-related costs on imported products.

CBAM Emerging as Major Concern for Indian Industry

One of the key topics during the conference was the European Union's Carbon Border Adjustment Mechanism (CBAM), which aims to impose carbon-related tariffs on imports from countries with less stringent climate regulations.

Indian industry representatives expressed concerns regarding the potential impact of CBAM on sectors such as:

• Steel

• Cement

• Aluminium

• Chemicals

• Manufacturing exports

Experts stressed the need for Indian companies to improve carbon efficiency, sustainability reporting and green production practices to remain competitive in future European markets.

The discussions also highlighted the importance of balancing climate objectives with fair trade principles and developmental considerations for emerging economies.

CTIL Experts Present Research and Trade Advisory Initiatives

The conference also included technical presentations by CTIL experts on several specialised trade-related topics.

Presentations covered:

• Leveraging India's FTAs with the EU, UK and EFTA

• SPS and TBT barriers under emerging trade pacts

• Services trade and digital economy opportunities

• CBAM and EU carbon measures

• Trade Remedies Advisory Cell initiatives

Experts explained how trade advisory and legal support systems can help Indian exporters navigate increasingly complex international trade regulations.

India Expanding Role in Global Trade Architecture

The conference reflected India's broader strategy of actively shaping its position within the evolving global trade system through strategic economic partnerships and modern trade agreements.

As geopolitical realignments and supply chain diversification accelerate globally, India is increasingly positioning itself as a major manufacturing, services and investment destination.

Trade analysts believe successful conclusion and implementation of comprehensive agreements with Europe could significantly strengthen India's export capabilities, attract investment and deepen integration into advanced global value chains.

The event concluded with a vote of thanks delivered by FICCI Assistant Secretary General Pragati Srivastava.