EU-India Economic Ties Strengthen, Free Trade Agreement Talks Show Promise

The EU-India relationship is on a positive trajectory, with an expanding economic footprint, according to Hervé Delphin, Ambassador of the Delegation of the European Union to India. He highlighted that ongoing negotiations for a Free Trade Agreement (FTA) between the EU and India could significantly boost trade flows and economic cooperation.

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The Federation of European Business in India (FEBI), supported by the EU Delegation in India and the embassies of EU member states, held its first Annual General Meeting (AGM). This meeting marked a significant milestone in FEBI's journey, formalising its Board of Directors with 14 elected members and confirming key office bearers.

EU-India Economic Relations

Delphin noted that over 4,500 European companies operate in India, providing 6.5 million direct and indirect jobs. The EU is India's largest trading partner in goods, with trade amounting to EUR 123 billion in 2022-23. The EU also ranks among the top three investors in India.

Rémi Maillard, President and Managing Director of Airbus in India and South Asia, was elected as FEBI's first president. Sanjay Tiwari, Public Affairs Advisor to Maersk India Pvt. Ltd., and Oscar Esteban, President of the Indo-Spanish Chamber of Commerce, were elected as vice-president and treasurer, respectively.

FEBI's Role and Mission

FEBI aims to articulate the collective business interests of EU companies in India and facilitate growth in trade and investment between the two regions. "It is as much an honour as a responsibility to helm FEBI as its inaugural president," said Maillard. "FEBI will serve as a bridge between Europe and India to deepen bilateral trade and investment."

The AGM was held in New Delhi on July 4. FEBI currently has 73 member companies representing diverse sectors such as aerospace, automotive, agri-food products, chemicals and pharmaceuticals, consumer and luxury goods, finance and insurance, telecom and ICT and digital trade, machinery and capital goods, energy and renewables, and transportation and logistics.

Future Prospects

Delphin emphasised that FEBI would maintain close relations with Indian and European authorities. It will act as a credible intermediary between government and businesses while advocating for pro-business policies. "FEBI will bring a very much needed business perspective that will contribute to the further expansion of the EU-India economic ecosystem," he said.

More companies are expected to join FEBI soon. Maillard added that India's rapid expansion holds significant potential for European companies to grow symbiotically. "We will work with our Indian and EU stakeholders to ensure that trade opens more opportunities," he stated after his confirmation as president.

The ongoing FTA negotiations between the EU and India hold promise for enhancing trade flows significantly. This agreement could further strengthen economic cooperation between the two regions.

In summary, FEBI's establishment marks a new chapter in EU-India economic relations. With its mission to foster business interests and facilitate growth, FEBI is poised to play a crucial role in deepening bilateral trade and investment ties.