Stocks to buy: Raja Venkatraman recommends textiles stocks for 9 February following EU-India FTA
Subscribe to enjoy similar stories. After years of stop-start talks, India’s push for a free-trade agreement (FTA) with the European Union has finally delivered a potential economic tailwind. The deal, billed as one of India’s most ambitious trade pacts, promises to bolster labour-intensive industries, correct tariff asymmetries and unlock billions of dollars in market access.
With negotiations concluded and implementation targeted for 2026, policymakers see the agreement as reinforcing India’s positioning as a durable growth story amid shifting global trade patterns. Strategic timing and global messaging The EU-India FTA also carries a broader geopolitical message. It signals New Delhi’s intent to deepen diversified partnerships at a time of heightened trade frictions and slowing multilateralism, while underscoring a tilt toward bilateral arrangements.
Commerce and industry minister Piyush Goyal has said the pact is part of a wider negotiating push with 37 countries and reflects India’s emphasis on bilateral trade frameworks. The planned 2026 rollout follows an acceleration in talks after 2025 and is expected to help India capitalise on its demographic dividend and manufacturing revival, particularly as Western economies seek alternatives to China amid supply-chain realignments. One notable inclusion is the European Union’s Carbon Border Adjustment Mechanism (CBAM), its green tariff regime.
India has secured provisions aimed at softening the impact on exports such as steel and cement, balancing trade liberalisation with climate considerations. The clause is intended to protect Indian manufacturers while nudging them closer to global environmental standards. Massive tariff wins and market access At the core of the
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