Europe bolstering economic ties with India amid changing global order

New Delhi: Europe’s growing interest in strengthening economic ties with India, amid the changing global order, is reflected in the European Free Trade Association (EFTA), which entered into force on October 1, 2025, and the proposed broader EU-India free trade agreement (FTA), according to an article in Brussels Signal news portal.

It highlights that Switzerland, Norway, Iceland and Liechtenstein participated in the second India-EFTA Prosperity Summit in New Delhi on October 7. Both sides announced new business projects and reviewed progress under the agreement. Swiss President Guy Parmelin said that 53 companies from his country had investment plans across 20 economic sectors.

Norway, meanwhile, highlighted the presence of around 160 Norwegian companies operating in India. The governments also identified opportunities in advanced manufacturing, medical technologies, maritime transport, and energy.

These announcements, though, do not provide a complete picture of the results. The official documentation marking the agreement’s first anniversary does not include a consolidated figure for new investment actually disbursed or jobs directly attributable to the deal. Indian government put the increase in Swiss investment in the country at $202 million (181 million euros) between September 2025 and March 2026.

Meanwhile, the European Union, which is not part of EFTA, has also expedited trade talks with the objective of concluding the agreement in December this year during Prime Minister Narendra Modi’s visit to Brussels.

The article underscores that merchandise trade between India and the EU-27 reached 118 billion euros in 2025. Europe imported 69.5 billion euros worth of Indian goods and exported 48.9 billion euros, resulting in a trade deficit of 20.6 billion euros. That made the EU India’s second-largest trading partner in goods, behind the United States and ahead of China which shows the huge potential of strengthening economic ties.

In addition, the stock of European direct investment in India stood at 132.8 billion euros in 2024, with more than 6,000 European companies established in the country directly providing around three million jobs, the article states.

The agreement negotiated with Brussels provides for tariff reductions or eliminations covering 96.6 per cent of European goods exports to India, according to the Commission. It estimates that it could save European exporters around 4 billion euros annually in customs duties once fully implemented. Amid the ongoing tariff battle between Washington and Beijing, this is welcome news, the article points out.

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