NDTV Exclusive: Malta Envoy On Why India-EU Trade Deal Is Important

With a high-level European Union delegation set to arrive in India for the Republic Day celebrations, the long-pending India-EU Free Trade Agreement (FTA) may finally be nearing the finish line. In an interview with NDTV's Senior Executive Editor Aditya Raj Kaul, Malta's High Commissioner to India, Reuben Gauci, said he was "very, very hopeful" that the remaining hurdles would be resolved and the deal described by the European Commission President as the "mother of all deals" could be signed soon.

"It is very important for the EU and India to sign the free trade agreement. It is important for all EU member states, including my country, which is the smallest," Gauci said, underlining that trade agreements are negotiated by the European Union as a bloc and directly affect every member state. "So I am really, really hoping that the last points are addressed and we will have the deed signed."

The optimism comes ahead of the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa, who will attend the Republic Day as chief guests, a move being seen in diplomatic circles as a strong signal of political commitment to take the trade pact across the line.

The EU and India had earlier, in February 2025, agreed to try and conclude the FTA by the end of that year. Now, at the start of 2026, diplomats suggest the negotiations are in their final phase. Gauci recalled that when the EU leadership visited India with the full College of Commissioners last year, it marked a key milestone and showed that the agreement had moved to the top of the strategic agenda.

Beyond trade numbers, the broader global context appears to be pushing both sides closer. With renewed trade tensions, tariff wars and an increasingly uncertain global economic order, particularly after fresh tariff moves by the United States under President Donald Trump against several European countries, New Delhi and Brussels are both looking to secure more stable and predictable economic partnerships.

"In a world where there is a lot of unpredictability at the moment, I believe that this unpredictability has in fact pushed the EU and India together," Gauci said, adding that while nothing in geopolitics is ever entirely good or bad, the present turbulence may have helped accelerate the final stretch of the negotiations.

Asked what reaction such a major India-EU trade deal might evoke in Washington, the Maltese envoy declined to speculate on President Trump's response. However, the backdrop of transatlantic strains, including the recent controversy over Greenland and threats of higher tariffs on Europe, has reinforced the EU's need to deepen economic ties with other major partners.

The Maltese envoy also addressed the escalating tensions between the United States and Europe over Greenland, after Washington imposed 10 per cent tariffs on several European countries and threatened to raise them to 25 per cent if its demands are not met. Stressing European unity on the issue, Gauci, whose country Malta is one of the EU's smallest and remains constitutionally neutral and outside NATO, struck a conciliatory note. "Let good sense prevail. Our neutrality is not just about staying out of conflicts, but about promoting peace," he said, expressing hope that dialogue and good faith would prevent further escalation. He added that for Malta, "peace is good sense, and good sense is peace," underlining that Europe hopes for a diplomatic, not confrontational, outcome to the standoff.

For India, the FTA would mean significantly improved access to one of the world's largest markets. For European businesses, it would open wider doors into one of the fastest-growing major economies. The agreement is expected to cover not just goods and services, but also investment, supply chains and regulatory cooperation.

As EU leaders gather in New Delhi for Republic Day followed by the India-EU Summit, expectations are rising that the long-negotiated India-EU trade deal may finally be sealed, offering a rare note of optimism in an increasingly fragmented global economy.