India-EU Trade Deal Counters Protectionism, Says European Council President

European Council President Antonio Costa, chief guest at India’s Republic Day celebrations alongside European Commission President Ursula von der Leyen, said India and the European Union (EU) can act as “strong providers of stability, protectability and reliability” on the global stage. Speaking exclusively to HT ahead of the India-EU Summit, Costa highlighted that the forthcoming free trade agreement (FTA) would send a clear signal against tariffs and protectionism.

Costa emphasized that growing security and defence cooperation between India and the EU is crucial for maintaining stability in the Indo-Pacific and ensuring free and open commerce between the region and the Atlantic. The summit is expected to conclude negotiations on the FTA, finalize a Security and Defence Partnership, and establish a framework for mobility for Indian students and professionals.

“In our multipolar world, it’s essential that the EU and India become closer partners. Together, we can strengthen the rules-based international order and showcase that trade agreements—not tariffs—are the way forward,” Costa said, stressing the geopolitical stabilizing role of the trade pact.

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The EU is India’s largest trading partner, accounting for €120 billion in goods trade in 2024 and €59.7 billion in services trade in 2023, with EU foreign direct investment in India rising to €140.1 billion in 2023 from €82.3 billion in 2019. Once ratified by the European Parliament, the FTA is expected to boost bilateral trade and lift sectors such as textiles and jewellery, which have been hit by 50% US tariffs since August 2025.

Costa added that the FTA “sends an important political message that India and the EU prioritize trade agreements over protectionism,” noting that rising tariffs in some countries make such agreements critical for global economic stability.

The Security and Defence Partnership will further strengthen cooperation in cybersecurity, counter-terrorism, and maritime security, including joint operations such as Operation Aspides, ensuring security in the Indo-Pacific and supporting free trade across the Mediterranean and Red Sea.

This agreement, Costa said, reflects a vision where India and the EU work together as reliable partners to safeguard international rules-based trade, promote stability, and respond effectively to geopolitical uncertainties.

Also Read: India-EU Trade Deal Nears Seal: Top Leaders Head to Republic Day