Source The telegraph India
Nobel Prize-winning economist Abhijit Banerjee has said that India does not depend on the United States as much as Washington often assumes, underlining the importance of New Delhi’s growing engagement with the European Union through a proposed Free Trade Agreement (FTA).
Speaking on India’s evolving trade strategy, Banerjee argued that the country today has multiple economic and strategic options, reducing its reliance on any single global power. He noted that while the US remains an important partner, India’s market size, demographic advantage, and expanding manufacturing base give it greater negotiating strength than is commonly acknowledged in Washington.
Banerjee pointed out that the India-EU FTA holds significant potential for both sides. For India, deeper access to European markets could boost exports, attract high-quality investments, and support domestic manufacturing under initiatives such as “Make in India.” For the EU, India represents a fast-growing market at a time when global supply chains are being reshaped.
“The assumption that India has no alternative but to align closely with the US is flawed,” Banerjee said, adding that India’s economic growth trajectory allows it to pursue a more balanced and independent trade policy. He stressed that diversification of trade partners is not about distancing from the US, but about safeguarding India’s long-term economic interests.
The Nobel laureate also highlighted that geopolitical shifts and trade uncertainties have made FTAs more relevant than ever. According to him, an agreement with the EU could help India integrate more deeply into global value chains while maintaining strategic autonomy.
Negotiations for the India-EU FTA have gained momentum in recent months, with both sides aiming to resolve differences over tariffs, market access, and regulatory standards. Banerjee’s remarks come at a time when India is positioning itself as a key global economic player, seeking partnerships that reflect its growing confidence and leverage on the world stage.
