India, EU To Revisit Inclusion Of Investment Liberalisation Chapter In FTA: EU Ambassador

(MENAFN- KNN India) New Delhi, May 9 (KNN) India and the European Union (EU) may consider expanding their recently concluded Free Trade Agreement (FTA) to include a chapter on investment liberalisation when the pact is reviewed after two years of implementation, EU Ambassador to India Hervé Delphin said.

Speaking at the Federation of European Business in India (FEBI) meeting on Thursday, Delphin noted that,“this FTA doesn't have a chapter on investment liberalisation in non-services sectors,” reported FE.

He indicated that both sides could revisit this aspect under the agreement's review clause after it comes into force, likely in early 2027.

The Department of Commerce's additional secretary and chief negotiator for the India–EU FTA said,“We are working on that (investment liberalisation).” The agreement, concluded on January 27, 2026, is currently undergoing legal scrutiny.

Push for Parallel Investment Agreements

Apart from liberalisation, Delphin stressed the need to conclude negotiations on the proposed Investment Protection Agreement (IPA), which aims to safeguard investors against non-commercial risks such as regulatory changes or political uncertainty.

He explained that an investment liberalisation chapter would provide national treatment and Most Favoured Nation (MFN) status to investors, while also restricting conditions such as local content requirements that could hinder trade and investment flows.

Strong Economic Presence and Investment Flows

European businesses already have a significant presence in India. According to a report by the Federation of European Business in India, over 6,000 European firms operate in the country, generating about USD 220 billion in turnover in 2024-around 5 per cent of India's GDP-and supporting millions of jobs.

Cumulative investments by European countries in India stand at approximately USD 140 billion, while Indian companies have invested around USD 40 billion in Europe. Around 1,500 Indian firms are currently operating across European markets.

Geographical Indications Pact Also in Focus

Delphin emphasised,“To complete the picture, we should also swiftly conclude negotiations on the third agreement launched in parallel with the FTA and IPA, which is the Agreement on Geographical Indications (GI). And be sure that we also give a boost to trade by ensuring proper protection of Indian and EU's iconic products, whether Darjeeling tea or Roquefort cheese,” as quoted by FE.

Next Steps in Approval Process

The FTA is presently in the legal scrubbing stage, expected to conclude by July, after which it will be translated into multiple EU languages. The agreement will then require approval from the European Council, followed by a vote in the European Parliament.

Designed as an 'exclusive' trade agreement covering only trade-related matters, the pact will not require ratification by individual parliaments of all 27 EU member states, potentially expediting its adoption.

(KNN Bureau)

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