India’s growing economic strength and its flagship ‘Make in India’ initiative are attracting increasing attention from European businesses that see the country as a strategic partner for growth, investment, and job creation, said Herve Delphin, Ambassador of the Delegation of the European Union to India.
Speaking at the second Annual General Meeting of the Federation of European Business in India (FEBI), Delphin emphasized that India already hosts a strong European business presence and that a Free Trade Agreement (FTA) could significantly deepen these economic ties.
According to a new FEBI survey, over 6,000 European companies are currently operating in India, together employing more than three million people. These firms not only invest but also manufacture, innovate, and export from India—directly contributing to Prime Minister Narendra Modi’s ‘Make in India’ vision.
“EU businesses view India as an attractive market — one that presents challenges, but even greater opportunities,” Delphin noted. “While benefitting from these opportunities, European companies also make major contributions to India’s economy by creating jobs, investing, and innovating. In short, they truly ‘Make in India’.”
The European Union remains India’s largest trading partner, with bilateral trade in goods reaching EUR 120 billion, surpassing both the United States and China. Including services, total trade has reached EUR 180 billion, according to FEBI data. Despite this, Delphin highlighted that “there remains huge untapped potential,” as the EU and India are respectively the world’s second- and fourth-largest economies.
To realize this potential, Delphin said, both sides are working to advance FTA negotiations, with the 14th round set to begin on October 6 in Brussels. “An FTA would greatly enhance investment flows and supply chain cooperation. Nearly 80 per cent of EU firms say they would expand investments and job creation in India if such an agreement is reached,” he added.
Both European Commission President Ursula von der Leyen and Prime Minister Narendra Modi have expressed their commitment to concluding the deal by the end of 2025. “The EU was and remains ready to finalise a meaningful package. We look forward to the next round of talks and to achieving a mutually beneficial agreement,” Delphin said.
Alongside the FTA, India and the EU are also negotiating an Investment Protection Agreement to ensure a stable and predictable environment for investors. The framework seeks to balance the right of governments to regulate with legal clarity for businesses.
The EU has recently introduced a new EU–India Strategic Agenda, aimed at strengthening cooperation in prosperity, sustainability, technology, defence, and mobility. The initiative proposes the creation of innovation hubs, Blue Valleys for value chains, and a TTC 2.0 framework focusing on critical supply chains and digital cooperation.
Concluding his remarks, Delphin said that India’s economic rise is integral to Europe’s global vision. “FEBI and the wider European business community are proud to be part of India’s growth story and of the EU–India partnership,” he noted.
As India celebrates Navratri, the Ambassador called it an “auspicious moment” for deepening ties between the two economies and advancing a shared vision of sustainable and inclusive growth. (Source: Businessline)
