The European Union (EU) and India are currently negotiating a bilateral free trade agreement (FTA) and investment framework. There is an ongoing debate as to whether the EU-India FTA will act as a building block for the trading partners. This article addresses the broader concerns about compatibility; prospects of and the challenges to the proposed EU-India FTA; identifies the building and stumbling blocks in the ongoing negotiations; and suggests a way forward from a policy perspective. The findings suggest that to maximize the potential benefits of this FTA, trade barriers (tariff and non-tariff) in goods and services sectors should be addressed. This must be complemented by a mutually agreeable time frame to conclude negotiations in areas where interests of the partners vary.
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