India-EU Free Trade Agreement: A New Era of Economic Partnership

India and the EU have finalized an FTA, marking India's 19th trade deal. The agreement aims to boost India's exports to the EU, mitigate US tariff impacts, and reduce reliance on China. It offers significant tariff reductions in key sectors and is expected to strengthen bilateral trade relations.

India and the European Union (EU) have officially concluded negotiations for a proposed free trade agreement (FTA), marking a significant milestone as India's 19th trade pact. The FTA is expected to significantly boost India's exports to the 27-nation bloc, facilitating a diversified range of Indian shipments.

Since 2014, India has finalized seven similar trade agreements with countries including Mauritius, Australia, and the UAE. The new FTA with the EU aims to mitigate the effects of high US tariffs on global trade, offering preferential access and immediate duty eliminations across various Indian export sectors such as textiles and electronics. This agreement predominantly focuses on reducing dependency on China while enhancing bilateral trade volumes.

Bilateral trade between India and the EU stood at USD 136.53 billion in 2024-25, highlighting the EU's significance as India's largest goods trading partner. The deal is projected to open up the EU market for Indian agricultural products and processed foods, while the EU will gain enhanced access to India's rapidly growing market. This renewed partnership heralds a promising era of cooperation, underscored by plans for sustained economic growth and integration.

(With inputs from agencies.)