India To Introduce New Laws To Protect GI Products While Finalizing The Investment Protection Agreement With The EU Before The Upcoming FTA Comes Into Force
Picture a scenario where your favourite Darjeeling tea and authentic European Feta cheese get strict global protection, while cross-border capital continues to create thousands of new jobs.
This is happening right now as India and the 27-nation European Union move forward on a dedicated India-EU Investment Protection Agreement and a Geographical Indications pact.
India's Commerce and Industry Minister, Piyush Goyal, confirmed that discussions are underway to create a safe framework for bilateral investments, running alongside the recently concluded free trade agreement negotiations.
This major step promises to keep international capital safe while ensuring unique cultural and farm products keep their heritage alive globally.
Protecting Cross Border Financial Capital
The proposed Investment Protection Agreement aims to give businesses a highly predictable and safe space to operate across these two massive economies.
Right now, about 6,000 European firms have a physical footprint in India, making the European Union a leading investor in the country. The new framework will ensure fair and equal treatment for these international investors.
It will protect investments against unlawful seizures without fair compensation and set up effective ways to settle complex disputes. By building mutual trust in each other's legal systems, both regions hope to create a stable environment that encourages businesses to expand, share technology, and create local jobs.
Defending Heritage and Regional Goods
Along with investment protections, trade officials are making steady progress on a standalone Geographical Indications agreement. A geographical indication identifies an agricultural, natural, or manufactured product that comes from a specific territory and has unique qualities tied to that exact region. This specific pact will legally shield famous regional products from copycats in foreign markets.
For example, premium Indian exports like Darjeeling tea and Basmati rice will get strict trademark protections across Europe, while traditional European foods like Feta cheese will enjoy the same legal safety in the Indian market.
India's Commerce and Industry Minister noted that putting this agreement into action will require some domestic legal changes, which the relevant ministry plans to introduce in the Indian Parliament soon.
Unlocking Massive Mutual Trade Value
These specific agreements act as key pillars for the broader free trade agreement between India and the European Union, with negotiations officially wrapping up on January 27, 2026. The economic scale of this partnership is huge.
Trade between the two partners reached about €136 billion in the 2024-25 period. This makes the European Union India's largest trading partner for merchandise goods. Also, bilateral trade in services has grown remarkably, climbing steadily to €59.7 billion recently, showing just how deeply connected the digital and professional networks between the regions are.
Once fully up and running, the comprehensive trade deal is set to drop tariffs on nearly 97 percent of European exports to India. The European Commission estimates this will lead to about €4 billion in annual duty savings for European exporters. By opening up access to economies that make up a massive 76 percent of the global gross domestic product, business opportunities should grow exponentially for companies on both sides.
Building Trusted Global Supply Chains
The ongoing talks highlight a strategic global shift towards building stronger and more trusted supply chains.
With 1.4 billion people and a fast-growing middle class, India offers an unmatched consumer market for European businesses.
On the flip side, major European manufacturing firms increasingly see India as a reliable base for advanced production and research, especially in high-value sectors like healthcare, pharmaceuticals, and car manufacturing.
Official government estimates suggest the final legal agreements could be formally signed by the end of 2026. The actual rollout could start in March or April of 2027, depending on the necessary legislative approvals from member states. As the rules take their final shape, international businesses are being told to prep their supply chains early to get the most out of these historic economic deals.
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