S. Jaishankar at the India–EU Forum: Why This Partnership Is About Power, Not Just Trade
- Joydeep Chakraborty
- 2 days ago
- 5 min read
If the India–EU Free Trade Agreement is the engine, then the India–EU Forum is the steering wheel.
The ink on the India–EU Free Trade Agreement was barely dry when New Delhi hosted a forum that signalled a deeper strategic turn.
That timing was no accident. When External Affairs Minister S. Jaishankar opened the inaugural India–EU Forum in early February, the message was unmistakable that this was not a celebratory add-on to a trade deal, but the opening move in a much larger geopolitical play.
Beyond Tariffs: A Partnership Redefined
When S. Jaishankar called the India–EU Free Trade Agreement a “game changer”, the room knew this was about far more than trade. His address signalled that the India–EU relationship has outgrown spreadsheets and tariff schedules.
Held on 6–7 February 2026, the first India–EU Forum arrived at a moment of unusual alignment. A long-stalled FTA had finally been concluded. Political momentum was high after a recent summit. And both sides were navigating a world reshaped by supply-chain shocks, war-driven uncertainty, climate pressures and accelerating technological rivalry.
The Forum, organised by the Ministry of External Affairs with the Ananta Centre, was designed as a Track 1.5 platform which was less scripted than diplomacy yet more consequential than conferences. Over two days, policymakers, generals, CEOs and scholars debated not just cooperation, but convergence.
The Engine and the Steering Wheel
If the India–EU Free Trade Agreement is the engine, then the India–EU Forum is the steering wheel.
Finalised on 27 January 2026, the FTA links two economic giants whose combined market spans roughly two billion people and accounts for about one-quarter of global GDP. Goods and services trade between India and the EU already exceeds €180 billion annually, supporting nearly 800,000 jobs in Europe alone.
In 2024–25, bilateral merchandise trade reached about USD 136.5 billion. Indian exports stood at USD 75.85 billion, nearly doubling from USD 41.36 billion in 2020–21. Services trade added another USD 83 billion. Yet both sides agree this is still only scratching the surface.
Under the deal, over 90 per cent of Indian goods exports to the EU will see tariffs eliminated or reduced. More than 70 per cent of tariff lines go to zero immediately, with the rest phased down over the coming years. On the EU side, tariffs on 96.6 per cent of goods exported to India will be eliminated or reduced, making it the most ambitious market opening India has ever offered any partner.
European exporters are expected to save nearly €4 billion a year in duties, and EU goods exports to India could double by 2032. For India, labour-intensive sectors, from textiles and leather to gems, jewellery and marine products, stand to gain instantly.
Proof on the Ground, Not on Paper
What gives the partnership credibility is that it is not starting from zero. Airbus already sources over €1 billion worth of components annually from India. Tata Advanced Systems and other Indian firms manufacture aerostructures, doors and fuselage components used in aircraft flown across Europe.
The A320 family, one of Europe’s most successful aircraft platforms, contains parts made in India. Even before the FTA, Europe’s most iconic aircraft were already flying with Indian-made components, making it an early signal of how deeply supply chains had begun to intertwine.
Technology cooperation tells a similar story. The EU’s satellite navigation system, Galileo and India’s NavIC have explored interoperability, particularly for civilian and disaster-response applications. Globally, this is rare. Two sovereign navigation systems chose alignment over competition, quietly building trust where geopolitics often blocks it.
Climate diplomacy, too, has tested and strengthened the relationship. The EU’s Carbon Border Adjustment Mechanism sparked anxiety among Indian steel, aluminium and cement exporters. Yet instead of escalating into a trade war, both sides built structured dialogue channels, attempting the harder task of reconciling climate ambition with developmental realities.
It is precisely because India and Europe have already cooperated in vaccines, aircraft manufacturing, naval security, digital infrastructure and climate diplomacy that the FTA and the India–EU Forum matter. They formalise what has already been proven on the ground.
From Market Access to Mobility
The FTA goes well beyond goods. In services, the EU has opened 144 sub-sectors, spanning IT, professional services, education and business services. India has reciprocated across 102 sub-sectors, including telecom, maritime, financial and environmental services.
A standout feature is mobility. Indian professionals, whether intra-corporate transferees, contractual service suppliers or independent experts, now have clearer, more predictable pathways into EU markets. Commitments to conclude social security agreements within five years address a long-standing grievance of Indian talent working in Europe.
Traditional knowledge has also found recognition. Indian practitioners of AYUSH systems will gain greater access to EU markets, while India’s Traditional Knowledge Digital Library is acknowledged within the intellectual property framework. These details may seem niche, but they shape perceptions of fairness and respect.
A Forum Built for Strategy, Not Soundbites
Jaishankar’s remarks framed the Forum not as a talk shop, but as a place to align long-term strategic thinking. Security, defence, technology, climate action and talent flows featured as prominently as trade.
Over 200 participants and 95 speakers engaged across 16 sessions. Commerce Minister Piyush Goyal spoke on economic engagement. Greek Defence Minister Nikos Dendias highlighted growing naval and security ties. Discussions ranged from semiconductors and cyber threats to the India–Middle East–Europe Economic Corridor.
This breadth matters. Trade agreements can unlock markets, but without strategic trust, they remain fragile. Europe’s recalibration towards India reflects a recognition that diversification away from single-point dependencies is no longer optional.
The Stakes of Delivery
If the inaugural Forum was about intent, the years ahead will be about delivery, and the stakes could not be any higher. Implementation will test bureaucracies, regulatory systems and political patience on both sides.
Yet the logic of the partnership is hard to ignore. For Europe, India offers scale, growth and a democratic counterweight in an unstable world. For India, the EU brings technology, capital, standards and a pathway into high-value global supply chains.
Jaishankar’s core argument that the relationship has moved beyond a narrow economic or normative frame resonated because it reflected reality. Trade was the entry point. Strategy is now the destination.
A Strategic Turn, Still in Motion
As the Forum concluded, one takeaway stood out. This was not about announcing yet another dialogue mechanism but recognising that India and Europe are already entangled in factories, data networks, shipping lanes and climate negotiations.
The ink on the FTA may have been fresh, but the partnership it underwrites is older, deeper and more consequential than a single document. The Forum simply gave it a name, a structure and a sense of direction.
Whether this moment becomes a turning point will depend on follow-through. Engines, after all, only matter if someone keeps a steady hand on the wheel.