‘Good News’: Shashi Tharoor Calls India-EU FTA ‘Very Big’, Highlights Long-Term Gains

Congress MP Shashi Tharoor on Thursday welcomed the announcement of the India-European Union Free Trade Agreement (FTA), describing it as “very big” and “very good news,” while cautioning that the benefits will accrue over the long term rather than immediately.

Commenting on the landmark deal, Tharoor said the agreement would take time to come into force as it must be ratified by all 27 EU member states.

“This is a very big piece of news and very good news, but it will take about a year because the European Union has 27 countries that have to ratify the agreement before it can be implemented,” he said.

“So, don’t expect any short-term benefits, but in the longer term it should be very good. I hope manufacturers, exporters and others will prepare

themselves for the major opportunities that will follow.”

The India-EU FTA was jointly announced on Tuesday at the 16th India-EU Summit by Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa, during the visit of senior European leaders to India.

The formal documents marking the conclusion of the agreement were exchanged between EU Trade Commissioner Maros Sefcovic and Union Commerce and Industry Minister Piyush Goyal.

The agreement marks a significant milestone in India-EU economic relations, following the re-launch of trade negotiations in 2022 after a prolonged pause.

It reflects years of sustained dialogue and signals a shared intent to establish a balanced, modern and rules-based trade partnership.

The European Union remains one of India’s largest trading partners, with bilateral trade in goods and services expanding steadily.

In 2024-25, India’s trade in goods with the EU stood at ₹11.5 lakh crore (USD 136.54 billion), including exports worth ₹6.4 lakh crore (USD 75.85 billion) and imports of ₹5.1 lakh crore (USD 60.68 billion).

Trade in services between the two sides reached ₹7.2 lakh crore (USD 83.10 billion) during the same period.

The integration of two large and complementary economies is expected to unlock new trade and investment avenues across sectors, including pharmaceuticals, manufacturing and services.

While immediate gains may be limited, policymakers and industry leaders see the FTA as a foundation for sustained economic growth and deeper strategic cooperation between India and the EU.