India EU Free Trade Agreement: The Free Trade Agreement (FTA) between India and the European Union (EU) has been described by the industry as a historic and far-reaching step for India. This agreement will open new trade, investment and technological cooperation opportunities for India in a large and prosperous market like the 27-nation European Union. Industry organizations believe that this will not only strengthen India’s exports but will also increase the participation of Indian companies in global value chains. India and EU on Tuesday announced the conclusion of negotiations on this FTA, which is being considered a major achievement for India in the global trade scenario.
FTA will prove to be a game changer
CII Director General Chandrajit Banerjee termed it a “game changer” for India’s global trade and said the agreement further strengthens the partnership between two large democracies and economies that together contribute about 25 percent of global GDP. He said that getting priority and concessional access to more than 99 percent of India’s exports in the European Union is very important for the Indian industry. This will give a big boost to exports of textiles, apparel, leather, footwear, gems and jewellery, marine products, engineering goods, vehicles, agricultural and processed food products as well as IT and professional services.
FICCI President Anant Goenka also said that the European Union is the largest and most promising market among India’s recent free trade agreements. The India-EU FTA will open up huge untapped trade and investment opportunities, facilitating market access, strengthening industry synergy and enhancing India’s competitiveness in high-value manufacturing sectors. This agreement can prove to be an important step towards the goal of “Developed India”.
New chapter in medical sector
In the context of health sector, Medical Association of India Chairman Pawan Chaudhary said that this agreement can start a new chapter of cooperation in health services. If it is implemented as per the announced rules, India will be able to increase exports of medical textiles, surgical equipment and disposable products. This will not only benefit Indian companies, but will also strengthen India’s identity globally as a trustworthy and innovation-based partner.
On behalf of the auto industry, Shailesh Chandra, President of SIAM and MD & CEO, Tata Motors Passenger Vehicles, said that the India-EU FTA will promote investment, employment and global participation in the auto sector by striking a balance between domestic production and market access. With this, consumers will also get more options in both areas. At the same time, Bharti Enterprises Chairman Sunil Mittal expressed confidence that this agreement will open new opportunities for cooperation in digital infrastructure and space sector and will give European investors an opportunity to expand in global markets with India.
Rajni Sinha, Chief Economist of CareAge Ratings, emphasized that India has taken special care of the protection of its sensitive agricultural and dairy sectors in this agreement. According to the data, bilateral trade in goods between India and the EU stood at $136.53 billion in 2024-25, of which India’s exports were $75.85 billion and imports were $60.68 billion. Overall, this FTA is considered to be a decisive agreement opening new doors for trade, investment, employment and technical cooperation for India.
