New Delhi— Finance Minister Nirmala Sitharaman on Tuesday emphasized that the European Union (EU) remains a top priority for India’s free trade agreement (FTA) negotiations, citing long-standing historical ties between the two regions.
Speaking at the “ADB Governors’ Seminar: Cross Border Collaboration for Future Resilience” in Milan, Italy, Sitharaman said that while India continues to successfully negotiate bilateral treaties with several nations, the EU stands out due to shared legacy and mutual economic interests.
“India has been negotiating with the EU for quite some time. But today, there’s a renewed urgency on both sides. Bilateral arrangements are becoming increasingly important amid global fragmentation and rising trade uncertainties, particularly following recent tariff moves by the US,” she noted.
Highlighting the complexity of global negotiations, Sitharaman stressed that trade deals require flexibility. “Negotiation is the art of making things possible. If both sides hold rigid positions, someone must bring elasticity. Deals must align with free trade principles without breaching acceptable norms,” she said.
The comments came just as Prime Minister Narendra Modi and UK Prime Minister Sir Keir Starmer announced the successful conclusion of the India-UK Free Trade Agreement — a development seen as a milestone in India’s trade diplomacy.
Addressing global supply chains, Sitharaman stated that India is focused on long-term resilience rather than short-term fixes. “Our strategy builds on our strengths — a large pool of young talent, growing technological capabilities, and sectors with high growth potential,” she said, pointing out that 600 million Indians are under the age of 25.
She added that India’s Digital Public Infrastructure (DPI) is designed to connect even the most remote artisans and entrepreneurs to global markets, expanding access and economic opportunity.
On the sidelines of the 58th ADB Annual Meetings, Sitharaman also met with top global banking executives. In her keynote address, she reaffirmed the government’s commitment to a robust and inclusive banking system. She encouraged global banks to expand their footprint in India and acknowledged their role in enabling Indian businesses to access international capital.
Additionally, Sitharaman met with Alvaro Lario, President of the International Fund for Agricultural Development (IFAD), to discuss joint efforts to support rural development, food security, and sustainable agriculture. She also highlighted India’s success in reducing poverty, expanding rural infrastructure, and deploying DPI as models for South-South cooperation across the Global South. (Source: IANS)
