IMF Welcomes India–EU Trade Deal Push Amid Global Uncertainty

The International Monetary Fund (IMF) has welcomed the India–European Union Free Trade Agreement (FTA), describing it as a positive step at a time when global trade is facing growing uncertainty and tensions.

Speaking during a briefing on emerging market economies, IMF Economic Counsellor and Director of Research Pierre-Olivier Gourinchas said recent trade agreements reflect countries’ efforts to strengthen economic ties despite a challenging global environment. He noted that after a turbulent period for global commerce, many governments are looking for practical ways to expand trade and cooperation.

Gourinchas pointed out that the India–EU FTA signals a broader trend of nations choosing collaboration over isolation. According to him, it is encouraging that some countries are still moving forward with deeper trade relationships where progress is possible, even as protectionist pressures rise in several parts of the world.

The IMF official also underlined the importance of trade agreements in providing stability and predictability. At a time when businesses and investors are grappling with global volatility, such agreements help create clearer policy frameworks and reduce uncertainty, he said.

While global trade has faced disruptions over the past year due to geopolitical tensions and shifting economic priorities, the IMF believes that agreements like the India–EU FTA can play a constructive role in keeping markets connected and confidence intact.

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