New Delhi – European Council President Antonio Costa has emphasized that the India EU trade deal represents a powerful statement against rising global protectionism and serves as a crucial stabilizer in an increasingly turbulent geo-economic landscape marked by unpredictability in international commerce.
India and EU as Global Stability Providers
Speaking in an exclusive interview, Costa highlighted that India and the European Union can jointly function as “strong providers of stability, protectability and reliability” on the global stage. The European Council President emphasized the critical importance of protecting the rules-based international order during a period characterized by growing geo-economic turbulence and trade uncertainty.
Costa, who served as chief guest at India’s Republic Day celebrations alongside European Commission President Ursula von der Leyen, will participate in the India-EU Summit scheduled for Tuesday. The summit is expected to witness the historic conclusion of negotiations for the India EU trade deal, marking a significant milestone in bilateral relations between the two democratic powers.
Strategic Significance of the India EU Trade Deal
The India EU trade deal carries profound geopolitical implications beyond its economic dimensions. Costa articulated that the agreement functions as “a very important geopolitical stabiliser and a showcase of how it’s possible to protect international rules-based trade.” This statement comes against the backdrop of significant disruption caused by protectionist trade policies adopted by various nations.
“Our trade agreement, I think, is a very important geopolitical stabiliser,” Costa stated, emphasizing how the India EU trade deal demonstrates commitment to multilateral cooperation rather than unilateral tariff measures. The European Council President, who traces his ancestral roots to Goa, stressed that in today’s multipolar world, closer partnership between the EU and India is essential for maintaining international stability.
Countering Global Protectionism Through Partnership
The India EU trade deal sends an “important political message to the world that India and the EU believe more in trade agreements than in tariffs,” Costa explained. This message resonates particularly strongly at a time when protectionism is rising globally and several countries have opted to increase tariffs rather than pursue cooperative trade frameworks.
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The agreement stands in stark contrast to recent trade policies implemented by the United States under Donald Trump, which have imposed punishing tariffs on multiple countries, including India. The US has levied 50 percent tariffs on Indian exports since late August, significantly impacting sectors such as textiles and jewellery.
Economic Impact and Trade Statistics
The European Union currently holds the position of India’s largest trading partner, with bilateral trade in goods valued at €120 billion in 2024, representing 11.5 percent of India’s total trade volume. Trade in services between the two regions reached €59.7 billion in 2023, demonstrating the depth of economic engagement.
Foreign direct investment figures further illustrate the strength of economic ties. The EU’s share of foreign direct investment stock in India reached €140.1 billion in 2023, showing substantial growth from €82.3 billion recorded in 2019. These statistics underscore the expanding economic relationship that the India EU trade deal aims to formalize and enhance.
Implementation Timeline and Expected Benefits
Once the India EU trade deal is formally signed and ratified by the European Parliament, a process anticipated to require at least one year, the agreement is expected to significantly expand bilateral trade. The deal could provide crucial relief to Indian exports, particularly in textiles and jewellery sectors that have been adversely affected by the 50 percent US tariffs implemented since late August.
The summit will also witness the finalization of a Security and Defence Partnership and a framework agreement designed to facilitate mobility for Indian students and professionals seeking opportunities in Europe.
Security and Defence Cooperation
Beyond trade, Costa emphasized the growing importance of security and defence cooperation between India and the EU. This collaboration is crucial for preserving security in the Indo-Pacific region and ensuring free and open commerce between the Indo-Pacific and Atlantic regions.
“We are working together with India in Operation Aspides and this has been very important to security in the Indo-Pacific and to preserve free and open trade between the Indo-Pacific and the Atlantic through the Mediterranean and the Red Sea,” Costa explained. The Security and Defence Partnership will build upon existing cooperation in cyber security, counter-terrorism, and maritime security domains.
Broader Geopolitical Context
The India EU trade deal emerges at a particularly significant moment in global affairs. Europe is recovering from recent tensions, including US President Trump’s controversial comments regarding Greenland and European NATO contributions. Meanwhile, India and the United States are separately negotiating a bilateral trade agreement despite current tariff disputes.
The India EU trade deal represents a strategic choice by both parties to pursue multilateral cooperation and rules-based trade rather than protectionist measures, positioning their partnership as a model for international commerce in an era of increasing economic nationalism.
