Portugal's Secretary of State for Economy, Joao Rui Ferreira, said on Monday, 11 May that the India-EU Free Trade Agreement (FTA) will mark the beginning of a new phase in relations between India and the European Union, creating a stable and predictable regulatory framework that goes well beyond tariff reduction. Ferreira made the remarks during a visit to New Delhi, where he is scheduled to meet Minister of State for Commerce and Industry Jitin Prasada for institutional discussions on the FTA and bilateral economic ties.

What the FTA Means Beyond Tariffs

Ferreira underscored that the agreement's value lies not merely in lower duties but in the consistency and long-term predictability it would offer businesses on both sides. "It will create a completely new environment where companies can operate under much more solid conditions on both sides," he said, acknowledging that some adjustments may be needed over time but stressing the structural shift the pact would deliver.

Portugal, he noted, has backed the agreement from the outset. "Portugal has supported this agreement since day one. We are confident that it will happen soon, hopefully, by 2027," Ferreira stated. This comes amid broader EU-India trade talks that have seen renewed momentum following years of stalled negotiations.

India's Economic Rise and Strategic Importance

Ferreira described India as the world's fourth-largest economy, with the stated ambition of becoming the third-largest — a trajectory he said positions India as a major global player with influence across multiple domains. "Prime Minister Narendra Modi is leading the country during this important period of transformation, and the ambition is clearly visible," he remarked.

He also praised India's Vision 2047 and its infrastructure development and reindustrialisation plans as "very positive initiatives," saying they would improve the quality of life for Indian citizens and strengthen Indian society overall. Notably, such explicit endorsements from European trade officials have grown more frequent as India's economic weight increases on the global stage.

Portugal's AI and Digital Economy Push

On the question of Portugal's positioning in artificial intelligence and the digital economy, Ferreira highlighted the country's strengths in STEM education, engineering, and technological talent. "We are now transforming this talent into real economic opportunities," he said, pointing to Portugal's extensive submarine cable network connectivity and competitive energy infrastructure as key enablers.

He added that Portugal has a strong national plan for data centres, given that AI is becoming a critical driver of industrial development and value creation in the 21st century. "AI is also becoming an important matter of strategic sovereignty in the global economy. Fortunately, Portugal has the talent, infrastructure, and national policies required to move quickly in this area," he observed.

Portugal as a Gateway for Indian Investors

Ferreira extended a direct invitation to Indian entrepreneurs and investors, describing Portugal as "an open and business-friendly country — a simple and accessible place to invest and grow." He positioned Portugal as a gateway to both Europe and Portuguese-speaking countries worldwide.

He also highlighted that Portugal's Trade and Investment Agency has recently reopened its office at the Portuguese Embassy in New Delhi, with the ambassador and embassy team pledging full support to businesses seeking opportunities in Portugal. The reopening signals a deliberate effort to deepen commercial engagement with India at an institutional level.

What Comes Next

Ferreira's meeting with Minister Jitin Prasada is expected to cover the FTA timeline, bilateral trade expansion, and investment facilitation. With the 2027 target date now publicly reiterated by a senior Portuguese official, pressure on both the EU and Indian negotiating teams to close outstanding differences — particularly on areas such as data localisation, government procurement, and services — is likely to intensify in the months ahead.