An Indian Perspective on EU Trade Policy

India and the EU have continued to revisit the same issues in their trade talks. The priorities of the two countries differ, as the EU focuses on market efficiency and a level playing field, where economic competitiveness is a key factor. Moreover, the EU emphasises high standards of labour, environment, data, competition and sustainability. These norms of fairness, which promote predictability, are appreciated; however, when considering trade relations with India, this must be balanced with developmental fairness. This is important as India, in contrast, places more significance on its policy space for development, gradual liberalisation, industrial upgrading and equitable outcomes for domestic producers and workers. This leads to a structural tension, which is considered to be one of the reasons why the 2023 deadline for the proposed India-EU Free Trade Agreement was missed. This underscores how far the two sides are still from a consensus. As already stated, the major reason for this friction is the high standard of the regulatory model which the EU has adopted. Empirical studies have identified certain issues with this practice. While these standards aim to ensure symmetry and prevent distortion in competition, they can operate as de facto barriers for developing countries. Indian exporters often face significant compliance burdens. The logic behind this approach adopted by the EU is that this leads to equality in conditions. However, it is argued that this approach overlooks the fact that different economies have different starting points. It is inequitable to have identical obligations without provisions for capacity building. An example where this divergence is evident is the debate on the inclusion of enforceable environmental provisions in Free Trade Agreements. While the EU is insistent on incorporating such provisions into trade agreements, however, India is hesitant to accept them. As a developing nation, these provisions, unless supplemented with financial support, technological transfer, and sufficient transition time, would impose an undue burden and have a chilling effect on incorporating non-trade issues, such as the environment and sustainability, into trade agreements. To achieve this balance, the involvement of young professionals from both countries is crucial. This is proposed as the young professionals will form the core of policymakers, lawyers, researchers, and others who will be at the forefront of managing and interpreting trade relations. This potential is already recognised institutionally. The WTO’s Young Professionals Programme, the EU’s Junior Professionals in Delegation scheme, and India’s Young Professionals Programme at the Directorate General of Foreign Trade all offer avenues for early-career experts to work directly on trade and sustainability issues. Thus, through academic engagement, such as international moot competitions, we can build cross-border relationships that foster collective problem-solving and creative solution-building capacities. Initiatives to involve young professionals are ardent as they would help translate global expectations into domestic realities and support industries in adapting to more transparent standards.