India-EU FTA breakthrough and strategic ties

Outgoing EU Ambassador to India Hervé Delphin described India-EU relations as stronger than ever, citing greater strategic understanding and comfort. He detailed the recently concluded India-EU Free Trade Agreement negotiations, which he characterized as 'FTA-2', driven by realism and pragmatism, with both sides identifying priorities and red lines. The negotiations gained momentum from 2025 and concluded in a little over a year, with hopes for signing within a year. Delphin addressed concerns over the EU's Carbon tariff (CBAM), explaining it aims to prevent carbon leakage and incentivize lower emissions, and noted that 80% of India's high-carbon exports to Europe are steel and iron, so the impact is sector-specific. He highlighted cooperation on de-risking supply chains, with the FTA as an enabler, alongside an Investment Protection Agreement and the EU-India Trade and Technology Council (TTC), examining strategic sectors including semiconductors, clean technology, pharmaceuticals, and agri-food. The concept of 'blue valleys' was introduced for industrial cooperation parks.