India prioritizes an FTA with the EU due to historical ties, said Finance Minister Nirmala Sitharaman in Milan. She stressed India’s long-term approach to global trade, resilient supply chains, and inclusive growth, highlighting key negotiations, digital infrastructure, and partnerships for sustainable development.
India places a high priority on negotiating a Free Trade Agreement (FTA) with the European Union (EU), citing strong historical and economic ties, Union Finance Minister Nirmala Sitharaman said on Tuesday. Speaking at the “ADB Governors’ Seminar: Cross Border Collaboration for Future Resilience” in Milan, Italy, she highlighted that the EU is at the forefront of India’s trade agenda.
“The EU is top of our priority because of the traditional links we have,” she noted, while emphasizing that global uncertainties, including recent tariff moves by the US and weakening influence of global institutions, have pushed many countries to seek bilateral trade arrangements.
The Finance Minister stressed that both India and the EU now share a heightened sense of urgency in concluding trade negotiations. “The market can be one big market. So, you need to have investments in various countries, you need to have market access in different countries, and you need to have bilateral arrangements,” she said, underlining the benefits of collaborative trade frameworks.
On the challenges of international negotiations, Sitharaman said that making progress requires flexibility and innovation. “Negotiation is the art of making it possible. When there are fixed positions, someone will have to bring in elasticity,” she stated, reiterating that any agreement must remain within the principles of free and fair trade.
In a related development, Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer announced the successful conclusion of a mutually beneficial India-UK Free Trade Agreement, marking another major milestone in India’s global trade strategy.
Turning to global supply chains, the Finance Minister underscored India’s long-term, resilient approach. “We’ve taken a long-term approach. Our strategy is to build on existing strengths like human capital, technological expertise, and key sectors where we can scale further,” she said. With a youthful population of over 600 million people under the age of 25, India is well-positioned to contribute dynamically to global growth, she added.
Highlighting India’s progress in digital innovation, Sitharaman spoke about the Digital Public Infrastructure (DPI) that enables even remote rural citizens to access global markets. “Even a villager with a handicraft product can connect to the world,” she pointed out.
On the sidelines of the 58th ADB Annual Meetings, Sitharaman engaged with top executives from global banks, reaffirming the Indian government’s commitment to efficient and inclusive banking services. She acknowledged the role of international financial institutions in helping Indian corporates access global capital and invited global banks to expand their footprint in India.
The Finance Minister also met with Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), to discuss collaboration on rural development, food security, and sustainable agriculture. Sitharaman highlighted India’s successful programs in poverty reduction and rural infrastructure as models for the Global South under South-South Cooperation.
India’s proactive and balanced global economic engagement, rooted in resilience, inclusivity, and long-term vision, is gaining momentum as it strengthens bilateral relationships while contributing positively to the international economic landscape.
