India-EU investment protection agreement under discussion: Goyal

Negotiations for an Investment Protection Agreement (IPA) between India and the European Union are underway, Union Commerce and Industry Minister Piyush Goyal has said.He also said some legal changes are required for an agreement on Geographical Indications (GIs) with the EU, which the ministry is going to introduce in Parliament."Discussions are underway on a bilateral investment agreement or the IPA, and for the GI pact, we need to make some legal changes," he told reporters, according to agency reports.India and the 27-nation European Union announced the conclusion of negotiations for a free trade agreement on January 27, which is touted as “mother of all deals”.
The EU is already a leading investor in India.About 6,000 European firms are present in India.A GI is primarily an agricultural, natural or manufactured product (handicrafts and industrial goods) originating from a definite geographical territory.An IPA provides a framework to protect investments made by companies and investors in another country.It aims to ensure fair and non-discriminatory treatment, protect investors against unlawful expropriation, and provide mechanisms for resolving investment-related disputes.

#WATCH | The Hague, Netherlands: On foreign direct investment in agriculture, trade agreements, and economic growth, Union Minister of Commerce and Industry Piyush Goyal says, "...The produce from plantations is processed through food processing plants, for which 100% FDI is already permitted. This boosts the demand for farmers' produce and ensures they receive better prices. For instance, the surge seen in sectors like coffee and spices is largely due to this, products are now being processed before being exported abroad." On the long-term economic gains from bilateral and multilateral partnerships, he further adds, "I believe that the more we engage with these nations, especially those with whom we are entering into bilateral or multilateral agreements, the more we stand to gain. Such agreements open up preferential access and create new opportunities across various sectors, including goods, services, education, manpower, and technology partnerships. Greater engagement will benefit the country: it will attract new investments, generate new jobs, and boost economic activity. After every delegation visit, I hold discussions with the members; their enthusiasm and feedback often yield valuable ideas..."(26.10)

— ANI (@ANI) October 27, 2026

Such agreements help boost investor confidence, reduce policy-related risks and encourage cross-border investment by offering greater certainty and transparency in the host country's regulatory framework.Similarly, a Gl agreement between India and the European Union would protect region-specific products in each other's markets, helping prevent imitation and misuse of their names.It would safeguard products such as Darjeeling tea, Basmati and Indian handicrafts, while protecting European products as Feta cheese
Goyal said that that these pacts would come into force aher the implementation of the free trade agreement, which is likely to be signed in December and may come inns March or April.He added that India's young and talented population, growing middle class, last-growing economy od rapid adoption of modern technology make it an attractive investment destination.With preferential access to economies accounting for 76 per cent of global GDP, India's trade opportunities would increase significantly, he added.

(Business Correspondent)