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India-EU FTA Struck on Equal Terms After 17 Years, Says Jitin Prasada
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Moneycontrol•26-09-2026, 12:35
India-EU FTA Struck on Equal Terms After 17 Years, Says Jitin Prasada
- •Union Minister Jitin Prasada announced the India-EU Free Trade Agreement (FTA) was concluded on "equal terms" after 17 years of negotiations, with talks formally relaunched in 2022.
- •Prasada emphasized India's evolving approach to foreign investment, seeking deeper manufacturing and technology partnerships, including joint ventures and technology transfers, rather than just market access.
- •He highlighted technology transfers, local manufacturing, and artificial intelligence as crucial for India's industrial growth, stressing the need for Indian companies to improve product quality for global markets.
- •Prasada noted AI's potential to boost productivity and reduce manufacturing costs, especially for MSMEs, citing investments in Uttar Pradesh's data center and AI ecosystem.
- •The minister linked Uttar Pradesh's tech ecosystem to India's "Design in India" ambition, envisioning chip-making in UP and global exports via Jewar Airport, while also stressing the need for adaptable government policies.
Key Questions Answered
India and the European Union concluded their long-pending free trade agreement negotiations on January 27, 2026, after talks that originally began in 2007 and were formally relaunched in 2022.
Union Minister Jitin Prasada stated that artificial intelligence can lower production costs for micro, small and medium enterprises by 5 to 10 percent and improve the overall competitiveness of India's manufacturing sector.
Foreign companies can no longer simply sell products and leave; they are now required to sign joint ventures and execute technology transfers to support deeper manufacturing partnerships in India.
