Industry sees telecom, digital infra gains from India-EU FTA

Industry leaders and policy experts from the domestic telecom and services ecosystem have welcomed the India–European Union Free Trade Agreement (FTA), citing its potential to support cross-border digital infrastructure build-outs, services exports, and long-term technology partnerships.

The free trade pact, widely referred to as the “mother of all deals,” is expected to create new opportunities for investment and collaboration in telecoms and digital infrastructure as India and Europe deepen economic ties across services, technology, and network-led industries.

The India-EU FTA was concluded at the 16th India-EU Summit and jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.

The agreement brings together the world’s fourth- and second-largest economies, together accounting for around 25% of global GDP, and positions both sides as long-term partners committed to open markets, predictability, and inclusive growth.

Why India-EU FTA Matters for Telecom, Digital Infra

Sunil Bharti Mittal, Founder and Chairman of Bharti Enterprises, said the agreement reflects strategic intent at a time of shifting global economic alignments. He described the FTA as a signal of trust and long-term partnership between India and the European Union.

“I am confident that this FTA will open new avenues for collaboration, particularly in digital infrastructure, space connectivity, and secure networks, offering European investors a compelling opportunity to innovate and scale with India for global markets,” Mittal said.

Mittal also said the agreement creates opportunities for Indian companies like Airtel to invest in Europe’s digital infrastructure, highlighting the two-way investment potential emerging from the pact.

What Does India-EU FTA Open Up for Services Trade

According to the Ministry of Commerce and Industry, the FTA provides unprecedented market access, with over 99% of Indian exports by value gaining preferential entry into the EU. The agreement spans trade in goods and services, regulatory cooperation, and emerging areas, including digital trade and small and medium enterprises.

Services form a central pillar of the agreement, with commercially meaningful commitments from the EU across 144 subsectors, including IT and IT-enabled services, professional services, education, and other business services. These provisions are expected to support India’s growing services exports and provide greater certainty about market access for Indian service providers.

The government has also stated that the agreement is expected to facilitate cooperation in critical areas such as artificial intelligence (AI) and semiconductors, supporting India’s long-term technological advancement.

Policy Signals from India-EU Business Forum

Speaking at the India-EU Business Forum, Prime Minister Narendra Modi said deeper business cooperation between India and the European Union would be shaped by shared priorities around supply-chain resilience, technology partnerships, and sustainability.

He noted that trade, technology, and critical minerals are increasingly being “weaponised” globally, underscoring the need for India and the EU to work together to de-risk dependencies and build reliable alternative supply chains. Modi urged industry on both sides to explore collaboration across areas such as electric vehicles, batteries, semiconductors, and pharmaceuticals.

The Prime Minister also called for expanded partnerships in defence industries and frontier technologies, including space, telecom, and AI. In addition, he said India and the EU should step up joint research and investment in clean and sustainable technologies, spanning green hydrogen, solar energy, smart grids, and other sustainability-linked sectors.

Industry Sees Momentum for Services, Networks

Ramendra Verma, Partner and Government Consulting Leader at Grant Thornton Bharat, said the India-EU FTA comes at a time when global trade is under pressure from higher tariffs, supply-chain realignments, and geopolitical uncertainty. He noted that the agreement can help improve market access for Indian exports by reducing EU duties across multiple sectors, including IT and services, while opening a large and complementary market for Indian companies. He added that the FTA could help broaden India’s export base by enabling greater participation by MSMEs.

From a geopolitical standpoint, Verma said the agreement could help reduce India’s dependence on China and Russia while strengthening its integration into global value chains. Government data shows that bilateral trade in goods between India and the EU stood at USD 136.5 billion (Rs 11.5 lakh crore) in 2024–25, while trade in services reached USD 83.1 billion (Rs 7.2 lakh crore), highlighting the scale of the economic relationship.

Officials have positioned the agreement as part of India’s broader strategy to secure trusted partnerships, diversify export destinations, and integrate more deeply into global value chains, while safeguarding sensitive domestic sectors.

For the telecom and digital infrastructure ecosystem, industry stakeholders view the FTA as a platform for longer-term collaboration rather than immediate transactional gains, particularly in services, digital trade, and technology cooperation.

As the agreement moves towards ratification, attention will turn to how its provisions on services, digital trade, and regulatory cooperation translate into sustained investment and collaboration between Indian and European telecom and digital infrastructure players.

The image accompanying this story was created using AI. The article was written and reviewed by the author, with limited AI-based editing support.

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