India-EU FTA a 'game changer', says Lithuanian envoy; signing by year-end
Synopsis
The India-EU Free Trade Agreement — reportedly the 'mother of all deals' — is ready to be signed, with Lithuania's ambassador confirming a year-end target and pledging to make it operational during Vilnius's EU Council presidency in early 2027. After nearly two decades of negotiations, the deal could redefine the terms of India's engagement with its largest trading bloc.
Key Takeaways
Lithuanian Ambassador Diana Mickevičienė confirmed the India-EU FTA is ready to be signed, with a target of end-2025 .
The agreement is expected to become operational during Lithuania's EU Council presidency from January to June 2027 .
The FTA has been described as the 'mother of all deals' and a blueprint for next-generation international trade agreements.
The pact balances liberalised access to goods and services with protection for 'vital and potentially vulnerable' sectors on both sides.
India-Lithuania trade is expanding into electronics, components, and digital devices, with growing cooperation in AI and new technologies.
Lithuania has called on India to join a global convention governing AI's impact on democracy and human rights.
Lithuanian Ambassador to India Diana Mickevičienė has described the India-EU Free Trade Agreement (FTA) as a 'game changer' that will significantly boost trade between India and the European Union, adding that the deal is ready to be signed and could come into force during Lithuania's presidency of the Council of the European Union from January to June 2027.
Signing Expected by End of 2025
'We hope to sign the FTA by the end of this year,' Mickevičienė said in an interview. She added that Lithuania would work 'very hard' to ensure the agreement becomes 'valid and operational' during its EU Council presidency. The envoy called the pact one of the highlights of Lithuania's upcoming presidency and described it as 'an important foundation stone for stronger India-EU engagement.'
What the Deal Covers
According to the ambassador, the agreement strikes a balance between liberalising market access for goods and services and protecting sectors that are 'vital and potentially vulnerable' on both sides. She described the pact as a 'big victory for both India and the EU,' noting that the two sides had navigated complex negotiations to arrive at a mutually acceptable framework. The FTA has reportedly been described as the 'mother of all deals' and is envisaged as a blueprint for a new generation of international trade agreements.
India-Lithuania Bilateral Ties
Beyond the broader EU framework, Mickevičienė highlighted the growing bilateral economic relationship between India and Lithuania. Trade between the two countries is increasingly moving beyond traditional goods, with components, electronic products, and digital devices now flowing in both directions. She also pointed to growing cooperation in artificial intelligence and new technologies, noting that Lithuanian companies are active in the sector and that Indian IT professionals are working in the country.
AI Governance and Global Norms
The ambassador called on India to join international efforts to establish a global convention governing the impact of AI on democracy, human rights, and shared values — an area where Lithuania is seeking broader multilateral engagement. This comes amid growing global debate over AI regulation frameworks, with the EU's own AI Act already in force and India developing its own policy approach to the technology.
What to Watch Next
With the FTA reportedly ready for signing, attention will now shift to the formal conclusion timeline and the ratification process across EU member states. If the agreement is signed before the end of 2025 and takes effect during Lithuania's EU presidency in early 2027, it would mark a landmark moment in India-EU economic relations — one that has been in negotiation for nearly two decades.
Point of View
Not just a transaction. The real test will be ratification speed across 27 EU member states and whether India's sensitive sectors, from dairy to automobiles, survive the fine print. Enthusiasm from a smaller EU member is welcome; the harder read will come from Berlin, Paris, and the European Parliament.
NationPress
21 Aug 2026
Frequently Asked Questions
What is the India-EU Free Trade Agreement?
The India-EU Free Trade Agreement is a comprehensive trade pact between India and the European Union that liberalises access to each other's goods and services while protecting sectors deemed vital or vulnerable on both sides. It has been described as the 'mother of all deals' and a blueprint for next-generation international trade agreements.
When is the India-EU FTA expected to be signed?
Lithuanian Ambassador Diana Mickevičienė said both sides hope to sign the FTA by the end of 2025. She added that Lithuania, which holds the EU Council presidency from January to June 2027, will work to make the agreement operational during that period.
Why is Lithuania's EU Council presidency significant for the India-EU FTA?
Lithuania takes over the rotating presidency of the Council of the European Union from January to June 2027, giving it a direct role in steering EU legislative and diplomatic priorities. The ambassador said making the India-EU FTA operational during this period would be one of the highlights of Lithuania's presidency.
How does the India-EU FTA affect India-Lithuania bilateral trade?
Beyond the broader EU framework, India-Lithuania trade is already growing, with increasing exchange of components, electronics, and digital devices. The ambassador also highlighted cooperation in artificial intelligence and noted that Indian IT professionals are working in Lithuania.
What is Lithuania's position on global AI governance?
Lithuania has called on India to join international efforts to create a global convention governing AI's impact on democracy, human rights, and shared values. The ambassador noted that Lithuanian companies are active in the AI sector and that deeper India-Lithuania tech cooperation is envisaged.
