In 2022, the European Union (EU) and the Republic of India formally relaunched EU-India negotiations on a balanced, ambitious, comprehensive and mutually beneficial Free Trade Agreement (FTA) and launched separate negotiations on an Investment Protection Agreement (IPA). Initial negotiations between the EU and India for a Free Trade Agreement were launched in 2007 but were suspended in 2013.

In line with the statements released by the European Commission, the overall objective of the current negotiations is "to maximise the considerable trade and investment potential between the EU and India". India and the EU are already important trading partners. The EU is India's third largest trading partner, accounting for almost 11% of Indian trade in 2021. India is the EU's 10th most important trading partner, accounting for over 2% of EU trade in 2021. Liberalisation of trade and investment between the EU and India therefore represents an opportunity for the economic growth and the creation of jobs. Moreover, like all EU FTAs, this future agreement is expected to include ambitious and enforceable provisions on trade and sustainable development and to promote high environmental and labour standards in the EU and India.​