New Delhi, January 27
The Federation of Indian Export Organisations (FIEO) has wholeheartedly applauded the visionary leadership, strategic foresight, and decisive diplomacy of the Prime Minister of India, following the historic announcement of the conclusion of the India–European Union Free Trade Agreement (India–EU FTA). The landmark agreement was jointly announced today by the Hon’ble Prime Minister Shri Narendra Modi, and European Commission President Ursula Von Der Leyen, at the 16th India–EU Summit held in New Delhi.
The conclusion of the India–EU FTA marks a defining milestone in India’s global economic journey and stands as a testament to the Government of India’s unwavering commitment to trade-led growth, economic reforms, and global integration. The agreement reinforces India and the European Union as trusted and reliable partners committed to open markets, predictability, and inclusive growth. It is the outcome of persistent, result-oriented negotiations steered with strong political resolve by the Government since the re-launch of talks in 2022, reflecting a shared vision to establish a balanced, modern, and rules-based economic partnership, said S.C. Ralhan, President, FIEO.
The European Union is among India’s largest trading partners. In FY 2024–25, India–EU bilateral trade in goods stood at INR 11.5 lakh crore (USD 136.54 billion), with exports of INR 6.4 lakh crore (USD 75.85 billion) and imports of INR 5.1 lakh crore (USD 60.68 billion). Trade in services reached INR 7.2 lakh crore (USD 83.10 billion). Together, India and the EU represent the 4th and 2nd largest economies globally, accounting for nearly 25% of global GDP and one-third of global trade—an opportunity that the Government of India has strategically unlocked through this transformative agreement.
Commenting further, Ralhan stated that the successful conclusion of the India–EU FTA under the dynamic and reform-oriented leadership of the Prime Minister is a landmark national achievement, which will significantly enhance India’s export competitiveness and provide a powerful thrust to India’s engagement with global value chains. This agreement opens unprecedented market access for Indian exporters across goods and services, particularly empowering labour-intensive sectors, MSMEs, women entrepreneurs, artisans, and youth—core focus areas of the Government’s inclusive growth agenda.
Ralhan added that with tariff elimination of up to 10 per cent on nearly USD 33 billion worth of Indian exports, the FTA will provide immediate and tangible gains to key sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, marine products, handicrafts, and automobiles. These benefits will translate into higher exports, large-scale employment generation, and stronger grassroots participation in global trade, reinforcing the Government’s vision of export-led prosperity.
The agreement comprehensively covers trade in goods and services, rules of origin, customs facilitation, trade remedies, and emerging areas such as digital trade and MSMEs. It includes robust mechanisms to address non-tariff barriers—an outcome of the Government’s proactive engagement with EU regulators—through enhanced regulatory cooperation, transparent SPS measures, and streamlined customs procedures. The calibrated and quota-based liberalisation in the automobile sector will allow EU manufacturers to introduce advanced models in India, while creating future opportunities aligned with the Government’s ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives.
Indian consumers are expected to benefit from improved access to high-technology products and increased competition. Agriculture and processed food exports will receive a major boost, with enhanced market access for tea, coffee, spices, fruits, vegetables, and processed foods, while the Government has prudently safeguarded sensitive sectors such as dairy and cereals, ensuring farmer interests remain fully protected.
The FTA delivers commercially meaningful commitments in services, including IT/ITeS, professional services, education, financial services, tourism, construction, and other business services. Predictable market access across 144 EU subsectors will significantly enhance opportunities for Indian service providers, while reciprocal access will attract high-technology services and investment into India. Progressive mobility provisions reflect the Government’s sustained efforts to secure global opportunities for Indian professionals, covering short-term business travel, intra-corporate transfers, contractual service suppliers, independent professionals, and work rights for dependents.
Additionally, India has secured recognition for practitioners of Indian Traditional Medicine to work under home title in EU Member States where such practices are not regulated—a significant diplomatic and cultural achievement reflecting the Government’s commitment to global recognition of India’s traditional knowledge systems. The agreement reinforces intellectual property protections under TRIPS, recognises the Traditional Knowledge Digital Library (TKDL), and promotes cooperation in cutting-edge areas such as artificial intelligence, clean technologies, semiconductors, and sustainable development, including support related to CBAM compliance.
Ralhan further reiterated that the India–EU FTA, together with the Government’s recent FTAs with the UK and EFTA, effectively opens the entire European market for Indian exporters, marking a strategic breakthrough in India’s trade diplomacy. This landmark agreement aligns seamlessly with the vision of ‘Viksit Bharat 2047’, and positions India as a resilient, competitive, and forward-looking global trade leader.
The India–EU FTA heralds a new era in bilateral economic engagement, reflecting the Government of India’s strategic clarity, negotiating strength, and long-term vision—strengthening trade, investment, and strategic cooperation with the 27-member European Union while laying robust foundations to address future global challenges.
