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Jaishankar Signals Sharper Europe Focus in 2026 as India–EU FTA Talks Enter ‘Decisive Phase’

Responding to a question on FTAs and their impact on agriculture and family-run businesses, Jaishankar said tariffs were only part of the challenge

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The first India - Weimar format meeting focussed on deepening India – European Union relations X/@DrSJaishankar
Summary
  • Jaishankar forecasts stronger India–Europe ties and deeper partnerships in 2026.

  • India seeks EU backing as FTA talks enter a decisive phase.

  • Standards and regulations, not tariffs alone, hinder farm and MSME exports.

  • Europe’s €120bn trade with India makes deal a major economic prize.

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External Affairs Minister S. Jaishankar predicted that 2026 will mark an upswing in India-Europe relations. He also sought support from Luxembourg to give the European Union a boost in New Delhi's relationship.

“So are there other particular countries, particular relationships that we can trust more than others? And I think that common sense is today bringing India and the European Union much closer,” he said while interacting with the Indian community in Luxembourg.

Highlighting the volatility and uncertainty in the global landscape, Jaishankar said countries are reassessing their interests and calculations, increasingly arguing that “it is not enough to de-risk — we should be building closer friendships and deeper partnerships.”

“So I can fairly confidently predict that 2026 will see an upswing in ties with Europe. You will see, certainly, I can speak for the Indian end of that, you will see a much greater investment of time and energy and attention on our part where Europe is concerned,” he added.

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India's Europe Focus

Jaishankar is currently on a week-long trip to Europe, covering France and Luxembourg. His trip is set against the backdrop of India-EU's ongoing free trade agreement (FTA) talks, which have entered a "decisive phase". The negotiations first began in 2007 but stalled for years over market access and standards. Talks resumed in 2022, and in early 2025, both sides publicly aimed to conclude negotiations in the course of 2025.

India-EU bilateral relations date back to the early 1960s, with India being amongst the first countries to establish diplomatic relations with the European Economic Community in 1962. The EU is India’s second-largest trading partner–around €120bn in goods trade in 2024. A deal would mark a huge economic prize for India; hence, it is keeping Europe in sharp focus for the year, along with multiple engagements scheduled for this year.

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Responding to a question on FTAs and their impact on agriculture and family-run businesses, Jaishankar said tariffs were only part of the challenge. More often, he noted, the real hurdles lay in complex standards and regulations, citing debates around residue norms in products such as rice.

He added that cumbersome paperwork and compliance requirements can be as restrictive as tariffs themselves, creating additional barriers for exporters. These complexities, he said, explain why trade negotiations take time, as governments must closely examine export experiences over the past 10, 15 or even 20 years across different products.

Jaishankar said India is now far more committed to pushing its products into global markets. Despite tariff volatility this year, he noted, exports have performed better than expected.

Highlighting recent progress, he said India has concluded several free trade agreements in recent years, including deals with Oman and New Zealand. While some agreements may be modest in scale, he stressed that each one creates new opportunities for specific sets of exporters, with incremental gains adding up over time.

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It is noteworthy that currently, Commerce and Industry Minister Piyush Goyal is also on an official two-day visit to Brussels from today. The visit underscores the intensifying diplomatic and technical engagements between New Delhi and Brussels, signalling a decisive push toward concluding the India-EU FTA.

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