India-EU Trade Deal Opens $75 Billion Export Gateway for 99% of Goods

With this historic deal, which is touted as the biggest in India's history, Rs 6.41 lakh crore ($75 billion) worth of exports are poised for take-off, with $33 billion of exports in labour-intensive sectors like textiles, leather, marine products, gems and jewellery are set to gain immensely from preferential access under the FTA.

Union Minister for Commerce and Industry Piyush Goyal said the conclusion of the India-EU FTA represents a defining achievement in India's economic engagement and global outlook.

"This supports India's approach to secure trusted, mutually beneficial and balanced partnerships. Beyond a conventional trade deal, it represents a comprehensive partnership with strategic dimensions and is one of the most consequential FTAs," he said.

India, powered by a young and dynamic workforce and one of the fastest-growing major economies, stands poised to leverage this FTA to create jobs, spur innovation, unlock opportunities across sectors, and enhance its competitiveness on the global stage, said the minister.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen jointly announced the conclusion of the "mother of all deals", marking a historic milestone in India-EU economic relations and trade engagement with key global partners.

In 2024-25, India's bilateral trade in goods with the EU stood at Rs 11.5 lakh crore ($136.54 billion) with exports worth Rs 6.4 lakh crore ($75.85 billion) and imports amounting to Rs 5.1 lakh crore ($60.68 billion). India-EU trade in services reached Rs 7.2 lakh crore ($83.10 billion) in 2024.

"Beyond goods, it unlocks high-value commitments in services complemented by a comprehensive mobility framework enabling seamless movement of skilled Indian professionals," said Goyal.

The India-EU FTA gives a decisive boost to its labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles, bringing down tariffs up to 10 per cent on almost $33 billion of exports to zero on entry into force of the Agreement.

Beyond enhancing competitiveness, it empowers workers, artisans, women, youth, and MSMEs, while integrating Indian businesses more deeply into global value chains and reinforcing India's role as a key player and supplier in global trade, according to the ministry.

On automobiles, a calibrated and carefully crafted quota-based auto liberalisation package will not only allow EU auto makers to introduce their models in India in higher price bands but also open the possibilities for Make in India and exports from India in future.

"Indian consumers to benefit from high-tech products and greater competition. The reciprocal market access in the EU market will also open up opportunities for India-made automobiles to access the EU market," said the ministry.

Moreover, India's agricultural and processed food sectors are poised for a transformative boost under the India-EU FTA, creating a level-playing field for Indian farmers and agrarian enterprises.

"Key commodities such as tea, coffee, spices, fresh fruits and vegetables, and processed foods will gain enhanced competitiveness, strengthening rural livelihoods, promoting inclusive growth, and reinforcing India's position as a trusted global supplier. India has prudently safeguarded sensitive sectors, including dairy, cereals, poultry, soymeal, certain fruits and vegetables, balancing export growth with domestic priorities," the ministry noted.

Beyond tariff liberalisation, the FTA provides measures to tackle non-tariff barriers through strengthened regulatory cooperation, greater transparency, and streamlined customs, Sanitary and Phytosanitary (SPS) procedures, and Technical Barriers to Trade disciplines.

India's predictable access to the EU's 144 subsectors (which include IT/ITeS, Professional Services, Other Business Services and Education Services) will provide a boost to Indian service providers.

On mobility, the India-EU FTA provides a facilitative and predictable framework for business mobility covering short-term, temporary and business travel in both directions.

The EU has also offered commitments in 37 sectors/sub-sectors for Contractual Service Suppliers (CSS) and 17 sectors/sub-sectors for Independent Professionals (IP), many of which are sectors of interest to India, including Professional Services, Computer and related Services, Research and Development Services, and Education Services.

According to the ministry, India also secured a framework to constructively engage on Social Security Agreements over a five-year horizon, together with a framework supporting student mobility and post-study work opportunities.

- IANS