The fact that a state-level experiment that was previously written off as provincial economics is now at the center of India’s biggest trade agreement in decades is a subtle irony. With its emphasis on infrastructure and industrial urgency, the so-called “Gujarat Model” has subtly emerged as India’s selling point in Brussels.
The Modi administration decided to scale an established policy rather than creating a new one from the ground up. The outcome is an exportable formula that strikes a balance between growth incentives and assertive diplomacy, and it seems remarkably coherent. India now constructs whole industrial corridors, connected by new rules of engagement, where Gujarat earlier built ports.
Speed is at the heart of it all. The Gujarat model gave priority on the speed at which infrastructure was delivered, investments were cleared, and projects were approved. India’s negotiating strategy is currently being reshaped by that same tempo. As European partners observe India’s demands for lower textile tariffs and access to IT services, they are dealing with a negotiating partner that is not only well-prepared but also acts with a clear sense of urgency.
This method is especially novel since it combines data-driven oversight with traditional industrial policy. Indian policymakers are tracking implementation at a level that is extremely effective in removing bureaucratic burden by utilizing dashboards and digital audits. What was once a multi-year maze of paperwork is now frequently a six-month race.
| Key Detail | Information |
|---|---|
| Policy Framework | “Gujarat Model” – High-speed, business-focused development approach |
| National Adaptation | Infrastructure, logistics, sector-specific trade accelerators |
| International Focus | India–EU Free Trade Agreement (FTA) negotiations |
| Core Sectors | Textiles (5Fs), Green Energy, Semiconductors, AI/Data Centers |
| Notable Contradictions | Protectionist tariffs, uneven growth, US-EU trade tensions |
| Reference Link | https://www.fticonsulting.com/insights/articles/data-center-boom |
One excellent illustration of this is the 5F model, which stands for Farm to Fibre to Factory to Fashion to Foreign. It’s more than a catchphrase. It’s the dance of the supply chain. The purpose of each link is to draw rural produce into international commerce routes. That is strategically inclusive, not just astute economics.
This alignment is especially helpful for Europe, which is still adjusting following Brexit and wants to lessen its reliance on Chinese manufacturing. Brussels wants India’s size to be free of China’s political influence. Additionally, India views the EU as a gateway to higher-value exports due to its self-reliance goal. It’s convergence, not coincidence.
India has expanded the Gujarat model’s local pitch into a global dialogue through strategic summits. Sovereign wealth funds are increasingly drawn to MOUs that formerly attracted regional investors. The industrial parks that formerly catered to Gujarat’s SMEs are now being replicated in Tamil Nadu, Maharashtra, and Uttar Pradesh.
However, there are still some paradoxes that must be disregarded.
India charges high tariffs on imported components—30% on some circuit boards, for instance—despite projecting an image of being a flexible trading partner. Although the goal of these protectionist walls is to promote indigenous industry, they also increase costs and impede international integration. That friction seems paradoxical for a country that wants to become a supply chain hub.
During the denim fallout in 2025, this inconsistency became tragically evident. Indian denim exports fell by an astounding 86% as a result of US tariffs, which had an effect on Gujarat’s own manufacturers. I recall gazing at that figure with a silent understanding of how policy winds may drastically alter even the strongest production pipelines, rather than with incredulity.
India did not, however, back down. It redirected instead. Many factories refocused on domestic demand by turning inward. Others reorganized their businesses and placed bets on long-term contracts headed toward Europe. Another indication of the model’s inherent flexibility is that, despite its stuttering, it did not stall.
The FTA between India and the EU that is now being negotiated is beginning to take shape as more than just a deal. It’s turning into an example of how trade frameworks may change without sacrificing national interests. India’s more international approach has influenced professional mobility, investment safeguards, and geographic indications.
Of course, critics continue to speak up. They contend that the Gujarat model ignores pressing needs in healthcare and education because it prioritizes the capital. Inclusion is subordinated to such infrastructure. and that the advantages are not distributed equally. Although these worries are legitimate, they are also a part of a larger reevaluation.
Notably, the tone of government planners is starting to change. Human capital, not only physical assets, is being discussed more and more. The goal is to add softer power—skill development, digital skilling, and social equality initiatives—to the current model. This hybrid paradigm has the potential to be very adaptable if properly implemented.
All eyes will continue to be on Brussels in the upcoming months.
This agreement symbolizes a conceptual alignment for both India and the EU, going beyond just commerce. It is no longer claimed that India’s economic revolution is a local miracle. It’s a platform that is repeatable, exportable, and possibly more confident than it has ever been.
Currently, the Gujarat model is neither entirely liberal nor entirely nationalist. It is unquestionably ambitious, adventurous, and sometimes paradoxical. And Brussels isn’t only observing because of that ambition, which is restrained by realism and motivated by delivery. It’s a negotiation.
A silent alignment is emerging from the ports of Ahmedabad to the chambers of Antwerp. One that has the potential to completely change the way developing nations present themselves, both in terms of process and policy. Additionally, there are instances when the process speaks louder than any promises.
