EU Envoy Confirms Strong Momentum for India-EU Free Trade Agreement in 2025

In an exclusive interview on CNBC-TV18’s Global Lens, the European Union Ambassador to India, H.E. Hervé Delphin, reaffirmed that there is strong momentum and unwavering political will on both sides to conclude a comprehensive and meaningful India-EU Free Trade Agreement (FTA) by the end of 2025. In a far-reaching and diplomatically engaging conversation, Ambassador Delphin provided clarity on critical issues ranging from trade negotiations, market access for European sectors, non-tariff barriers, and strategic cooperation to global geopolitical challenges. His remarks offered a deep insight into the evolving contours of the India-EU partnership, one that both sides are cultivating with renewed intensity and mutual trust.

“FTA looms big and tall on the top of our agenda,” said Ambassador Delphin, highlighting that negotiations have accelerated following the historic visit of the European Commission’s College to India in February, where Commission President Ursula von der Leyen and Prime Minister Narendra Modi reaffirmed their commitment to concluding the FTA. He further underlined that “there is definitely momentum and we are steady and resolute,” pointing out that both leaders have instructed their negotiating teams to deliver not only a deal by year-end, but a "meaningful" one.

Clarifying speculation around a potential interim or early harvest agreement, Ambassador Delphin emphasized, “There is no plan on the table to have this deal done in two phases… We are going for the full monty.” His choice of words reflected the EU’s determination to pursue a full-fledged FTA that covers a broad array of trade and investment areas, avoiding fragmented or limited interim pacts. He noted that nearly ten chapters out of twenty-three have already been concluded, and that the next round of negotiations, the twelfth, will take place in early July.

Delving into the core sectors of concern for the EU, the Ambassador candidly addressed the long-standing issue of automobile tariffs, a major sticking point in past rounds of trade talks. “There is on both sides a clear understanding that we need to make a breakthrough,” he said, calling the automobile industry a key component of the FTA discussions. He acknowledged that while the UK-India FTA had set certain precedents such as tariff reductions on specific categories of vehicles, the scale of the EU’s automotive sector demanded a proportionately larger and more ambitious agreement.

In terms of ambition, he said, “The EU economy is way larger than the UK and that scale element should be reflected in the final agreement,” a diplomatic but firm indication that the bloc expects deeper concessions. On wine and spirits, another vital export area for the EU, Ambassador Delphin described the sector as “an offensive interest of the EU,” highlighting the dual role of EU companies not just as exporters but also as local investors and re-exporters from India. He stressed the importance of reducing barriers in this area, while acknowledging the Indian market’s complexity and its potential.

A significant portion of the interview focused on non-tariff barriers, particularly the Quality Control Order (QCO) regime, which EU firms often cite as an obstacle to investment. “The problem is not the QCO itself—it’s the process,” Ambassador Delphin stated firmly. He explained that the time and uncertainty involved in obtaining QCO certifications frequently delays or discourages investment. “This is maybe a case where you have a lose-lose scenario,” he said, adding that simplifying and stabilizing the QCO environment would be a “net gain” for both sides.

The conversation also turned toward the EU’s Carbon Border Adjustment Mechanism (CBAM), a contentious issue in global trade, which India has expressed concerns over. Ambassador Delphin was quick to note that the EU does not consider CBAM a trade instrument but part of its climate agenda. While reiterating the EU’s openness to engage, he revealed that the bloc had recently agreed on a simplification package for CBAM and would soon begin a fresh round of outreach with Indian industry stakeholders in collaboration with FICCI. “We want to explain what it is,” he said, reinforcing the EU’s approach of transparency and engagement.

Beyond trade, the interview highlighted the broader strategic convergence between India and the European Union. The recent EU-India Strategic Dialogue, which included High Representative Kaja Kallas and External Affairs Minister Dr. S. Jaishankar, was described as a milestone in the maturing relationship. “It speaks a lot about the maturity and the trust that really infuses the EU-India relation at this point in time,” said the Ambassador. He emphasized the significance of both entities projecting themselves as “poles of stability in a world either in flames or in turbulences.”

Ambassador Delphin also confirmed that work is underway to conclude a Security of Information Agreement between India and the EU by the end of the year, which would allow both parties to exchange classified data and deepen defense cooperation. “This is a prerequisite,” he said, describing it as part of a political and legal process that would enable operational collaboration in defense industry and strategic domains.

On the India-Middle East-Europe Economic Corridor (IMEC), the Ambassador recognized the adverse impact of geopolitical tensions in the Middle East but emphasized that “the determination to have the IMEC developed is strong on both sides.” He explained that despite challenges, long-term projects like IMEC should not be derailed, and confirmed EU’s active involvement in green shipping corridors, submarine cable infrastructure like the Blue Raman project, and port-to-port decarbonization efforts with Indian ports such as Mumbai and Mundra.

Throughout the interview, Ambassador Delphin’s remarks underscored a growing alignment between India and the EU, both in economic and geopolitical terms. As the world navigates multiple crises, the India-EU partnership founded on democratic values, mutual economic interests, and a shared vision for global stability is poised to become one of the defining relationships of the 21st century.

From trade to technology, climate to connectivity, the multifaceted dialogue captured in this exclusive interaction illustrates the depth of the India-EU strategic bond. As Ambassador Delphin aptly concluded, “This is a consequential partnership for the 21st century.” With both sides showing resolve, ambition, and a commitment to substance over speed, the year ahead could well witness the realization of a long-awaited, comprehensive Free Trade Agreement—solidifying not just economic ties, but a forward-looking geopolitical alliance.