Europe seeks deeper economic ties with India
New Delhi Europe is increasingly looking to strengthen its economic engagement with India amid changing global trade dynamics, with the European Free Trade Association (EFTA) agreement and the proposed India-European Union Free Trade Agreement (FTA) emerging as key instruments for expanding bilateral trade and investment. The EFTA agreement, involving Switzerland, Norway, Iceland and Liechtenstein, came into force on October 1, 2025. The four countries participated in the second India-EFTA Prosperity Summit in New Delhi on October 7, where both sides announced new business projects and reviewed progress under the agreement. Swiss President Guy Parmelin highlighted that 53 Swiss companies had investment plans across 20 economic sectors. Norway also pointed to around 160 Norwegian companies already operating in India. Opportunities were identified in advanced manufacturing, medical technologies, maritime transport and energy. However, the agreement's first-year assessment does not provide consolidated figures for investments actually disbursed or jobs directly created. Indian government data showed an increase of $202 million in Swiss investment between September 2025 and March 2026. Meanwhile, negotiations for a broader India-EU FTA have gained momentum, with the objective of concluding the agreement in December during Prime Minister Narendra Modi's proposed visit to Brussels. Merchandise trade between India and the EU-27 reached 118 billion euros in 2025. European imports from India stood at 69.5 billion euros, while exports to India totalled 48.9 billion euros, resulting in a European trade deficit of 20.6 billion euros. European direct investment stock in India reached 132.8 billion euros in 2024. More than 6,000 European companies operate in India, directly providing around three million jobs.
