New Delhi, June 30 (IANS) When India and the European Union concluded their free trade agreement in New Delhi earlier this year, negotiators produced a pact that places far greater emphasis on regulatory cooperation than on tariff cuts, a new report has said.
The agreement, spread across 20 chapters, establishes an extensive architecture for consultation, transparency and institutional coordination, embedding about 125 cooperation provisions, the report from Vietnam Times said.
India and EU reassessed their place in a global economy shaped by geopolitical instability, technological competition, and economic security concerns leading to an FTA.
As countries seek to diversify away from risky dependencies without retreating from globalization, FTAs become frameworks for building trusted economic relationships built on regulatory cooperation rather than being simply instruments for lowering tariffs.
Despite India being a leading global supplier of generic medicines, European market access has been constrained not by tariffs but by regulatory approvals, pharmacovigilance and compliance systems, the report said.
“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,” it noted.
The FTA secures tariff commitments for drugs and medical devices, but it also shifts the focus to regulatory cooperation and trust between agencies driven by regulatory framework of the agreement.
“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,” it added.
The agreement also frames similar engagement on carbon pricing and industrial decarbonisation, creating a carbon‑border annex and technical consultation mechanisms.
The gains from FTA extend beyond market access for India. For growth in manufacturing capacity, innovation infrastructure, and its case as a trusted supply-chain partner, India needs capital, technology, and research collaboration that Europe can provide.
As India works on greater economic integration with the Gulf and Europe through initiatives such as IMEC, the FTA provides an institutional framework that could make those ambitions more commercially meaningful.
—IANS
aar/pk
