Previous Year Question

The Broad-based Trade and Investment Agreement, or BTIA, referred to the proposed comprehensive trade and investment agreement between India and the European Union.

India and the EU formally commenced BTIA negotiations in Brussels on 28 June 2007, following recommendations of the India–EU High Level Trade Group. It was intended to go beyond tariff reduction and establish an extensive framework covering trade in goods, services and investment.

The principal areas under negotiation included:

• Reduction of customs duties and non-tariff barriers on goods.

• Trade in services and temporary movement of Indian professionals.

• Investment protection and market access.

• Government procurement, competition and Intellectual Property Rights.

• Tariffs on automobiles, wines and spirits, and agricultural products.

• Data security, regulatory standards and sustainable development provisions.

For India, access for IT and other professionals to the EU services market, particularly through Mode 4 movement, was important. The EU placed emphasis on areas such as automobiles, wines and spirits, government procurement and Intellectual Property protection.

Option (b) is incorrect because India–GCC FTA negotiations constitute a separate process. Neither the OECD nor the Shanghai Cooperation Organisation was a party to the India–EU BTIA.

Current position (2026): India–EU trade negotiations, which had remained stalled for several years, were formally relaunched on 17 June 2022. Nine rounds had been held by September 2024.

On 27 January 2026, India and the EU announced the successful conclusion of negotiations for the India–EU Free Trade Agreement. It represents the continuation of the wider trade process previously referred to as BTIA, although current official documents primarily use the term India–EU FTA.

Official figures indicate that:

• The agreement covers the EU’s 27 Member States.

• Preferential access is provided on about 96.8% of EU tariff lines, covering approximately 99.5% of India’s exports.

• About 90.7% of Indian exports by trade value are expected to become duty-free immediately upon the agreement’s entry into force.

• More than US$33 billion of exports from labour-intensive sectors such as apparel, textiles, leather, footwear, and gems and jewellery are expected to benefit.

• India–EU services trade amounted to approximately US$83 billion in 2024.

The conclusion of negotiations should not be confused with entry into force. The negotiated benefits become operational only after signing, ratification or approval, and completion of the necessary internal legal procedures.