Finnish Foreign Affairs Minister Elina Valtonen has stated that the India-European Union Free Trade Agreement (FTA) will significantly intensify trade, bring investments, and create jobs on both sides. Speaking to ANI on Monday, Valtonen emphasized that Finland and India's relationship has never been stronger and that the FTA, agreed upon in January 2026, will eliminate tariffs on a wide range of goods including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles. The formal signing is expected in December 2026.
Finland’s Commitment to Fast-Track FTA Implementation
Valtonen affirmed that Finland will do everything in its power to ensure the FTA is implemented as soon as possible within the European Union. She noted the vast potential for fulfilling the agreement, both for businesses and for intensifying trade and investments. "We do see plenty of potential in fulfilling this agreement, both for our businesses, for intensifying trade, for having more and more investments on both sides, bringing jobs and prosperity to our people, but also from a political standpoint," she said.
Special Friendship and Strategic Partnership
Describing a "special friendship" with India, Valtonen underscored the importance of cooperation between countries that value people's ability to make their own choices. She recalled the visit of External Affairs Minister S. Jaishankar to Finland in June, during which both sides reviewed progress under the India-Finland Strategic Partnership. Discussions covered cooperation in start-ups, artificial intelligence (AI), semiconductors, critical minerals, quantum technologies, 6G, clean energy, and space.
Green Transition and Carbon Neutrality
Finland, which aims to be carbon-neutral by 2035, is ready to assist India in achieving its climate goals. "We are happy to assist our close friends in achieving climate neutrality as soon as possible, because it's not only important for the entire planet, but also for people to be able to live in clean surroundings," Valtonen stated. She added that clean energy is also an attractive business case.
Impact on Bilateral Trade and Investment
The FTA is expected to unlock new opportunities for businesses in both regions, particularly in sectors like digitalisation, green transition, and security-related matters. Valtonen highlighted that the agreement provides a solid foundation for ever-deepening cooperation. The elimination of tariffs on key export items from India—such as textiles, leather, and engineering goods—will likely boost Indian exports to the EU, while European investments in India are expected to rise, creating jobs and prosperity.
