Dr. Christian Cardona, Former Minister for Economy and Trade of Malta (2013–2019), President of the Council of the European Union, and former Member of the EU Council on Trade and Competitiveness.
Europe and India stand at a decisive moment in their economic relationship. As global trade becomes increasingly shaped by geopolitics, supply-chain resilience, and technological sovereignty, the EU–India partnership is no longer a matter of diplomatic aspiration but is an economic necessity.
Having served as Malta’s Minister for Economy and Trade between 2013 and 2019, and as President of the Council of the European Union during Malta’s EU Presidency, I witnessed first-hand how trade policy is shaped not only by markets, but by political courage, regulatory discipline, and strategic vision. I also saw how easily opportunity can be delayed when ambition is not matched by execution.
The renewed momentum around an EU–India Free Trade Agreement is welcome. Yet progress remains slow, weighed down by familiar challenges on both sides.
From the European perspective, India is often viewed as a complex market: high tariffs in certain sectors, regulatory opacity, and localisation requirements that create uncertainty for European investors. European businesses particularly SMEs continue to face difficulties in accessing public procurement, navigating standards, and ensuring predictable enforcement of contracts. These are not minor technicalities as they directly affect investment decisions.
From India’s perspective, the European Union is frequently perceived as over-regulated and overly prescriptive, particularly in areas such as sustainability standards, data protection, and carbon-related trade measures. While Europe sees these as instruments of long-term competitiveness and values-based trade, India often views them as non-tariff barriers that risk constraining growth and industrial development.
This tension reflects a broader issue: the EU and India approach trade from different historical and developmental trajectories. Europe’s trade policy is increasingly values-driven, embedding environmental, social, and governance considerations into market access. India’s priority, understandably, remains economic expansion, job creation, and industrial scaling.
The challenge, therefore, is not whether cooperation is desirable but whether both sides are willing to adapt.
During my time at the EU Council on Trade and the Council on Competitiveness, it became clear that Europe must be careful not to confuse regulatory leadership with regulatory rigidity. If European standards become unreachable rather than aspirational, Europe risks exporting compliance burdens instead of opportunity. Strategic partners such as India should be engaged as co-creators of future trade frameworks, not merely as rule-takers.
Equally, India stands to gain significantly from deeper alignment with European norms in key sectors such as digital services, advanced manufacturing, pharmaceuticals, and green technologies. Greater transparency, streamlined customs procedures, and legal predictability would unlock substantial European investment and technology transfer. And this particularly at a time when global investors are actively diversifying away from over-concentration in single markets.
Small EU member states like Malta offer a useful lens through which to view this relationship. As a trade-dependent economy with limited domestic scale, Malta has long relied on open markets, clear rules, and strategic partnerships beyond its immediate geography. During Malta’s Presidency of the EU Council, we consistently advocated for outward-looking trade policies that balanced competitiveness with inclusivity. That same philosophy applies to EU–India relations today.
The global economy is fragmenting. Protectionism is resurfacing under new labels, and multilateralism is under strain. In this context, a strong EU–India trade partnership would send a powerful signal that large, diverse democracies can still find common ground in rules-based trade, innovation, and shared prosperity.
But this will require compromise. Europe must show flexibility in sequencing and implementation. India must show readiness to open and modernise key sectors. Above all, both sides must move beyond cautious diplomacy to decisive action.
Trade agreements do not succeed because they are perfect. They succeed because they are timely. The window is open. The question is whether Europe and India will step through it together.
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