Shaking on it with Europe is worth it

Here we go on trade again - but with our 'allies' in Europe, not with our 'friend' in the US. Leaders on both EU and India sides have set a deadline. Last week, the hard work of working out compromises on developing mutually beneficial landing zones began. India's concerns of regulatory overreach, and the EU's fears of non-compliance, mustn't undermine the effort. They must forge a deal responsive to their evolving economic priorities, designed to build trust so as to tackle more complex negotiations.

Sticky issues haven't changed since 2007 in the FTA's Take 1. What has changed, drastically, is context. Take 2 will be forged with the US having triggered a global tariff war and supply chains disrupted. What's needed is a strong democratic alliance to underpin a rules-based world economic order. Building trust is essential. The EU's environmental regulations should become arenas of environmental cooperation that help India get industrial and tech upgrades for its 2047 'viksit' goal. For an economically gaunt EU, it's about securing a growing market and supply of clean products. Building on gains of the Trade and Technology Council, allowing both sides to secure early wins to build confidence, must be the way ahead.

In 2025, FTAs are no longer a plain vanilla trade deal. They are the building block of a partnership to make both economies competitive and sustainable, ensuring industries aren't undermined or unduly protected. Long acquaintance has meant a modicum of familiarity without the understanding. A successful FTA will require understanding each other's requirements and complexities for a strong partnership, much like a successful arranged marriage, forged in extraordinary times where the US is as predictable as a spinning top.