New Delhi — The India-European Union free trade agreement places greater emphasis on regulatory cooperation than tariff reductions, establishing a long-term framework for consultation, transparency and institutional coordination, according to a new report.
The agreement, concluded in New Delhi earlier this year, spans 20 chapters and includes about 125 cooperation provisions, the Vietnam Times report said.
The pact reflects efforts by India and the EU to reassess their positions in a global economy increasingly shaped by geopolitical instability, technological competition and economic security concerns.
As countries seek to reduce risky dependencies without withdrawing from globalization, free trade agreements are increasingly becoming frameworks for trusted economic relationships rather than simply tools for lowering tariffs, the report said.
This shift is particularly important for sectors such as pharmaceuticals. Although India is a major global supplier of generic medicines, its access to the European market has often been limited by regulatory approvals, pharmacovigilance requirements and compliance systems rather than tariffs.
“Tariff elimination does not by itself produce market access. It shifts the contest to a different terrain, one where trust between regulators, not customs schedules, determines outcomes,” the report said.
The agreement includes tariff commitments for pharmaceuticals and medical devices while also creating mechanisms for regulatory cooperation between Indian and European agencies.
“Through structured regulatory cooperation, the agreement may over time encourage greater harmonization of approval processes across the EU, improving market access while reinforcing the integrity of the single market,” the report said.
The pact also establishes mechanisms for engagement on carbon pricing and industrial decarbonization, including a carbon-border annex and technical consultations.
For India, the potential benefits extend beyond improved access to European markets. Expanding manufacturing capacity, strengthening innovation infrastructure and positioning the country as a trusted supply-chain partner will require capital, technology and research cooperation that Europe can provide, the report said.
The agreement could also support India’s efforts to deepen economic integration with Europe and the Gulf through initiatives such as the India-Middle East-Europe Economic Corridor by providing an institutional framework for greater commercial cooperation. (Source: IANS)
