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India and the EU are pursuing separate investment protection and geographical indications agreements even as their free trade deal moves towards signing and implementation
The Investment Protection Agreement and Geographical Indications pact remain under negotiation even as India and the European Union prepare to sign their free trade agreement, with the latter potentially requiring changes to Indian law.
Negotiations for an Investment Protection Agreement (IPA) between India and the European Union are underway, Commerce and Industry Minister Piyush Goyal said, while the government is preparing legal changes required to conclude a separate agreement on Geographical Indications (GIs).
“Discussions are underway on a bilateral investment agreement or the IPA, and for the GI pact, we need to make some legal changes,” Goyal told reporters.
The two agreements are being pursued separately from the India-EU Free Trade Agreement (FTA), negotiations for which were concluded on 27 January this year. The investment and GI agreements remain under negotiation, according to the European Commission’s official trade relations page.
The developments come as New Delhi and Brussels work towards signing the FTA by the end of the year, with implementation potentially following in 2027. The remaining agreements are intended to strengthen cross-border investment and protect products whose reputation and characteristics are linked to their geographical origin.
India-EU investment pact remains a work in progress
The proposed IPA is intended to provide a framework for protecting investments made by Indian businesses in the EU and European companies in India.
The negotiations have gained importance as both sides seek to deepen economic ties and encourage businesses to expand their presence in each other’s markets.
More from BusinessAccording to a report by Hindustan Times, EU Ambassador to India Jean-Eric Paquet described the investment protection agreement as a necessary complement to the FTA.
Paquet said negotiations were ongoing and identified the agreement’s structure, coverage and remedies as issues still being discussed. He did not provide a timeline for concluding the talks.
He also said the agreement would be important for businesses seeking to make greater use of the opportunities created by the trade deal.
The EU has previously argued that an investment protection framework could provide businesses with greater legal certainty when committing capital to the Indian market. In an address published by the European External Action Service in 2026, former EU Ambassador Herve Delphin said European companies were ready to invest more in India if appropriate conditions were created.
Delphin also noted that the FTA did not include a chapter on investment liberalisation in non-services sectors, arguing that the two sides should revisit the issue after the trade agreement enters into force.
What is the Geographical Indications agreement?
The proposed GI agreement seeks to strengthen the protection of products whose identity, reputation or characteristics are associated with a particular geographical area.
Geographical indications help distinguish authentic regional products from goods that may use similar names without meeting the relevant origin or production requirements. Such protection can support producers by preserving product identity and helping them compete in domestic and international markets.
Darjeeling tea is a prominent Indian example. Its reputation is linked to its geographical origin, making protection against misleading use of the name important for producers.
The EU also has a substantial GI framework covering region-specific agricultural products, food and beverages. Roquefort cheese is one example of a product associated with a particular place and production tradition.
A bilateral agreement could provide a framework for recognising and protecting selected Indian and European geographical indications in each other’s markets. The potential benefits extend to agricultural producers, food exporters, traditional industries and communities whose livelihoods depend on products with a recognised regional identity.
The exact commercial benefits, however, will depend on the products covered and the terms agreed by both sides.
The European Commission lists the GI agreement separately from the FTA and IPA. Its published negotiating records show that the two sides held six rounds of GI negotiations, with the sixth round taking place in March 2024. The commission’s document repository also lists eight rounds of investment protection negotiations, the latest published round being in May 2026.
These records establish the negotiating history, but they do not provide a final agreed text for either pact.
Why India may need legal changes
Goyal’s reference to legal changes required for the GI agreement introduces a domestic legislative dimension to the negotiations.
India’s geographical indication framework is governed by the Geographical Indications of Goods (Registration and Protection) Act, 1999, along with the associated rules. The framework provides for the registration and protection of geographical indications and helps prevent unauthorised use of protected names.
Any changes required to bring the proposed bilateral arrangement into effect would need to be assessed against the existing legal framework and the commitments India is considering under the agreement.
India and EU move towards signing the FTA
The investment and GI negotiations are proceeding alongside efforts to bring the wider India-EU trade agreement closer to implementation.
India and the EU concluded negotiations on the FTA on 27 January 2026 at the 16th India-EU Summit in New Delhi. The agreement is intended to reduce or eliminate tariffs on the vast majority of bilateral goods trade and improve market access for businesses on both sides.
On 11 September, the European Commission presented proposals to the EU Council for the signing and conclusion of the FTA, initiating the next stage of the European Union’s approval process.
The agreement still requires the relevant formal approvals before it can enter into force.
Reuters reported that Goyal expected the FTA to become operational within four to five months of signing. The minister was speaking during a visit to Germany.
A report published by Hindustan Times said both sides were working towards signing the agreement in December, potentially during Prime Minister Narendra Modi’s expected visit to Brussels. The report cited people familiar with the discussions and noted that the timelines remained fluid.
In a joint statement issued on 27 January 2026, Indian and European leaders called for negotiations on the IPA and GI agreement to be completed at the earliest opportunity. They also committed to expanding bilateral investment and strengthening cooperation in industrial development, job creation and supply chains.
Bilateral trade and investment ties
The agreements are part of a broader effort to deepen the economic relationship between India and the EU, one of India’s largest trading partners.
According to the European Commission’s trade profile, bilateral trade in goods reached €118 billion in 2025. The EU accounted for 11.1 per cent of India’s total goods trade, making it the country’s third-largest trading partner in goods.
India was the EU’s ninth-largest trading partner in goods in 2025, accounting for 2.3 per cent of the bloc’s total goods trade.
India’s exports to the EU include machinery and appliances, chemicals, textiles, metals and petroleum products. European exports to India are concentrated in industrial products, including machinery, transport equipment and chemicals.
The FTA is intended to reduce trade costs and improve access to these markets. The IPA and GI agreement could complement those objectives by addressing investment protection and the recognition of region-specific products.
