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EU-India FTA Hailed as Landmark Deal for 2 Billion-Person Market

The Federation of European Business in India has welcomed the newly announced EU-India Free Trade Agreement as a landmark development. The agreement establishes a rules-based framework for a combined market of nearly two billion people, with current bilateral trade already around €190 billion. Survey data shows overwhelming confidence, with over 95% of European companies planning to expand operations in India and 78% expecting the FTA to increase employment. The focus now shifts to effective implementation to ensure the deal translates into sustained investment and stronger supply chains.

Key Points: EU-India Free Trade Agreement Welcomed by European Business

  • Unlocks trade for 2B people
  • Bilateral trade at ~€190B
  • 95% of EU firms plan India expansion
  • 78% anticipate more jobs from FTA
  • Focus shifts to effective implementation
2 min read

Federation of European Business in India welcomes EU-India FTA, hails it amongst most consequential economic partnerships globally

European business federation hails the EU-India FTA as a landmark step to unlock trade, investment, and job creation in a combined 2-billion-person market.

"a landmark step in strengthening one of the most consequential economic partnerships globally - Sonia Prashar, FEBI"

New Delhi, January 27

The Federation of European Business in India welcomed the announcement of the EU-India Free Trade Agreement, describing it as a landmark step in strengthening one of the most consequential economic partnerships globally.

The agreement establishes a long-term, rules-based framework to unlock growth in trade, investment, and industrial collaboration for a combined market of nearly 2 billion people.

Sonia Prashar, Secretary General (FEBI), said, "The Federation of European Business in India (FEBI) welcomes the announcement of the EU-India Free Trade Agreement following the 16th EU-India Summit in New Delhi, describing it as a landmark step in strengthening one of the most consequential economic partnerships globally."

The agreement arrives as bilateral trade in goods and services reaches approximately EUR 190 billion. From the perspective of European businesses operating in India, the pact aligns with on-ground sentiment.

Citing the FEBI Business Sentiment Survey 2026, Prashar said, "India is among the world's fastest-growing major economies, with GDP growth projected at over 7.3% in 2026, and has emerged as the EU's largest trading partner, with bilateral trade in goods of around EUR120 billion in FY 2024, growing nearly 60% over the past decade. Investment confidence is robust, with nearly 67% of EU FDI into India recorded in the last ten years, and over 95% of European companies planning to expand their operations in India over the next five years."

She noted that the FTA is expected to serve as a catalyst for investment and employment. Findings from the survey indicate that 75 per cent of EU businesses expect higher investments and 78 per cent anticipate increased employment as a result of the agreement. Furthermore, 69 per cent of firms plan to expand manufacturing, while 37 per cent aim to scale Global Capability Centres (GCCs).

Prashar stated, "The focus now must be on effective implementation, so that improved market access, smoother compliance, and deeper supply-chain integration translate into sustained investment, quality job creation, and stronger EU-India value chains."

"The conclusion of the EU-India Free Trade Agreement is a landmark moment for one of the world's most important economic partnerships," Prashar said. "It reflects a shared strategic intent by India and the European Union to deepen trade, investment, and industrial cooperation at a time of global uncertainty, and provides a stable, long-term framework for businesses on both sides."

- ANI

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Reader Comments

S
Sarah B
As someone working in a European tech MNC in Bengaluru, this is very promising. Easier compliance and deeper integration can really help scale up operations here. Hoping for more R&D investment and high-quality job creation in the tech sector.
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Priya S
A combined market of 2 billion people is huge! But the government must ensure our farmers and small industries are protected. We've seen FTAs have downsides sometimes. The details on tariffs and standards will be key. Cautiously optimistic.
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Rohit P
Finally! This has been in the works for years. At a time when global trade is shaky, this partnership with the EU provides much-needed stability. Hope it leads to better access for Indian IT services, pharmaceuticals, and textiles in Europe.
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Michael C
The numbers are impressive – 95% of European companies planning to expand here. This shows immense confidence in India's growth story. The focus now, as the article says, must be on effective ground-level implementation. No more red tape, please.
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Kavya N
Good step, but let's not get carried away. We need to see if these "quality jobs" materialize for Indian engineers and managers, or if it just creates more low-wage assembly work. Also, will Indian companies get fair access to the EU market? The agreement must be a two-way street.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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