THEBUSINESSBYTES BUREAU

NEW DELHI, SEPTEMBER 26, 2026

India has concluded its long-pending Free Trade Agreement (FTA) with the European Union on what Union Minister of State for Commerce and Industry Jitin Prasada described as “equal terms”, marking a significant milestone after nearly 17 years of negotiations and opening fresh opportunities for trade, investment and industrial cooperation.

Speaking at the Uttar Pradesh International Trade Show (UPITS) on Saturday, Prasada said the India-EU trade pact represented a major achievement, particularly given the prolonged stalemate that had characterised the negotiations in earlier years.

 “The EU FTA was in talks for 17 years. They were not ready to have a conversation with us. Our government was able to strike a deal on equal terms,” he said.

India and the European Union formally concluded negotiations for the trade pact on January 27, 2026. The negotiations had begun in 2007 but remained stalled for several years before being relaunched in 2022.

The agreement has since moved closer to implementation, with the European Commission submitting the pact to the EU Council earlier this month for authorisation for signature and conclusion.

Prasada highlighted a broader shift in India's approach to foreign investment, saying the country increasingly expects international companies to contribute to domestic manufacturing and technological capabilities rather than viewing India primarily as a consumer market.

He said foreign companies looking to expand their operations in India would increasingly be encouraged to explore joint ventures, technology partnerships and technology transfers. Such collaborations, he said, could help strengthen domestic industrial capabilities and build deeper manufacturing ecosystems.

The minister's emphasis on technology transfer comes at a time when India is seeking to expand its manufacturing base, improve productivity and integrate domestic industries more closely with global supply chains.

Prasada also stressed that greater access to international markets must be accompanied by improvements in the quality of Indian products.

Indian manufacturers, he said, need to focus on meeting global quality standards as they seek to expand their exports and establish a stronger presence in international markets.

 “We need to ensure quality and the global market is waiting for us,” he said.

The emphasis on quality assumes added significance in the context of India's expanding trade engagement, as domestic businesses seek to compete with established international suppliers and take advantage of new market-access opportunities.

Artificial intelligence, according to Prasada, could become another major driver of India's next phase of industrial growth.

He said AI has the potential to transform manufacturing by improving productivity and reducing production costs, with micro, small and medium enterprises (MSMEs) standing to benefit significantly from wider adoption of the technology.

For smaller manufacturers, AI-enabled tools could support more efficient production processes, quality management and cost optimisation, potentially strengthening their competitiveness in both domestic and international markets.

Prasada also pointed to Uttar Pradesh's growing role in data centres and AI-driven technologies, highlighting investments by companies including Samsung and Yotta as indicators of the state's emerging technology ecosystem.

The minister said broader adoption of AI across industries could significantly enhance India's industrial competitiveness.

The combination of the India-EU FTA, greater emphasis on technology transfer, stronger domestic manufacturing capabilities and rapid adoption of AI could, he suggested, help shape India's next phase of export-led industrial expansion.