European Union: India-EU Relations, Trade and Smaller Countries: Belgium

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India-EU Relations

  • The 11th India-EU summit was held in December 2010 at Brussels

  • This was the first India-EU summit after Lisbon Treaty came into force

  • Manmohan Singh called for ‘taking the lead in avoiding protectionist trends, keeping markets open and encouraging the free flow of and movement of people’ by the two sides


  • The two sides have been negotiating an FTA

  • The major stumbling blocks are:

    • EU’s insistence on the environment and labour standards

    • Intellectual property rights of generic drugs

    • Resistance of EU member states over free movement of Indian nationals

  • India has a high tariff regime

    • So, India will have much to lose from FTA (?)

  • FDI multiband

  • Legal sector investment

Smaller Countries


  • India’s third largest trade partner in EU

  • Trade dominated by Diamonds with 75 pc of the bilateral trade in jewellery.

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