Free Trade Agreement

India–EU FTA: opportunities, challenges and strategic significance

The India - EU Free Trade Agreement is a landmark trade pact between India and the European Union that aims to deepen economic ties through extensive tariff reductions, expanded services access, and improved investment flows. The EU will provide preferential access covering nearly all of India’s export value, benefiting labour-intensive sectors such as textiles, leather, and marine products, while also opening opportunities in IT and professional services. At the same time, India will gradually lower tariffs on a large share of EU goods with safeguards for sensitive sectors. However, strict EU regulatory standards, sustainability norms, and carbon-related measures remain key challenges that could limit gains unless Indian industries upgrade compliance capacity. Overall, the agreement strengthens India’s integration with a major global market while requiring domestic reforms to fully realize its benefits.

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EU- MERCOSUR TRADE DEAL EXPLAINED

The EU-Mercosur FTA, signed in January 2026, seeks to form a major free-trade zone and counter China’s influence. Ratification faces resistance over Amazon deforestation, EU regulations, and farmer protests. For India, it risks trade diversion but offers lessons for negotiating its own EU trade agreement.

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INDIA-NEW ZEALAND RELATIONS: CHALLENGES AND WAY FORWARD

India and New Zealand, bound by shared values and Indo-Pacific goals, can deepen ties through a balanced FTA. Tackling dairy sensitivities, NTBs, and visas could unlock trade, education, and climate cooperation, shaping a strategic, Australia-like partnership model.

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INDIA-MALDIVES RELATIONS: SIGNIFICANCE AND CHALLENGES

India and the Maldives have reestablished bilateral ties following Modi's visit to the Maldives' Independence Day celebrations. The Maldives' strategic importance in the Indian Ocean is crucial for global trade and energy security. Future relations could involve sustained diplomatic engagement, economic cooperation, climate diplomacy, security cooperation, and multilateral cooperation.

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