India needs to liberalise its investment policies further in the non-services sector, EU Ambassador to India Hervé Delphin said on Thursday. He advocated the inclusion of a chapter on investment liberalisation as part of the India-EU Free Trade Agreement (FTA). Additionally, he called for an investment protection agreement that would provide investors with a solid legal framework.
Addressing the launch of ‘The Economic Footprint of EU Businesses in India’, released by the Federation of European Business in India (FEBI) on Thursday, Delphin said: “European companies which are not yet present in India want to come here and are ready to invest more. But you need to create more favourable conditions.” He pointed out that the India-EU FTA does not have a chapter on investment liberalisation in non-services sectors.
He emphasised that both sides need to revisit this area when the FTA framework is reviewed.
According to the report released by the Federation of European Business in India (FEBI), nearly 6,000 European firms are currently operating in India, with a major presence in the manufacturing sector. The report stated that EU FDI inflows into India registered significant growth from €3 billion in 2014 to €7 billion in 2024, while the cumulative stock stood at €120 billion by the end of 2025, accounting for around 17% of India’s total FDI inflows.
According to Delphin, India and the EU need to conclude an investment protection agreement to ensure better and hassle-free investment opportunities.
He added: “We should conclude promptly the ongoing negotiations on the investment protection agreement, which should give investors a solid legal framework and additional incentive to expand their economic footprint here in India, or for that matter, for Indian companies in Europe.”
India and the EU signed the FTA on January 27. Currently, legal scrutiny of the over 1,000-page FTA text is underway and is expected to be completed by July. The deal is likely to be implemented by the end of this calendar year or early 2027.