The India-European Union Free Trade Agreement (FTA) is set to open significant new avenues for businesses and deepen commercial cooperation between India and European nations, according to Antti Herlevi, Trade Counsellor at the Embassy of Finland in New Delhi. Speaking on Friday, 21 August, Herlevi said European businesses are keenly anticipating closer collaboration with Indian companies once the agreement becomes operational.

European Optimism Around the FTA

'This year is very important. As you know, the FTA has been signed, and Europeans are very much looking forward to working with India and Indian companies. There is a lot of excitement, and we hope that all the practicalities will be worked out soon,' Herlevi said.

He noted that businesses on both sides are eager for the agreement to move from signing to implementation, which would unlock greater opportunities for expanding trade ties and forging new commercial partnerships. The India-EU FTA, long in negotiation, represents one of the most consequential trade deals India has pursued with a major economic bloc.

Finland's Circular Economy Edge

Beyond trade liberalisation, Herlevi highlighted a specific area where India stands to gain considerably — Finland's deep expertise in circular economy models. He said European countries, and Finland in particular, have a long tradition of replacing linear production systems with sustainable circular alternatives, and that Indian businesses have significant scope to collaborate in this space.

The areas of potential cooperation span reducing material consumption, improving product design for longevity and recyclability, and strengthening recycling infrastructure. Herlevi argued that cutting material use could have a cascading positive impact across the entire value chain — reducing not just waste, but also energy and water consumption, while lowering dependence on virgin materials that are often highly carbon-intensive.

Design-First Approach to Sustainability

'Simply put, we should use fewer materials and recycle as much as possible. That can be a major game changer,' Herlevi said, underscoring the economic as well as environmental logic of the circular model.

He stressed that the transition must begin at the product design stage itself. Companies, he said, need to develop products that use minimal material, have longer lifespans, and are built in a manner that allows constituent materials to be recovered and reused. 'It starts with upstream solutions,' Herlevi said, adding that better planning at the outset is critical to building a circular-economy-compatible product ecosystem.

What the FTA Could Mean for India

The India-EU FTA is expected to cover goods, services, and investment, potentially benefiting Indian exporters in sectors ranging from textiles and pharmaceuticals to IT services. For European businesses, India's large and growing consumer market represents a major opportunity. Analysts have noted that the deal, if implemented efficiently, could reshape bilateral trade flows that currently stand well below their potential.

With implementation details still being worked out, the coming months will be critical in determining how quickly businesses on both sides can begin capitalising on the agreement's provisions.