The India - EU Free Trade Agreement is a landmark trade pact between India and the European Union that aims to deepen economic ties through extensive tariff reductions, expanded services access, and improved investment flows. The EU will provide preferential access covering nearly all of India’s export value, benefiting labour-intensive sectors such as textiles, leather, and marine products, while also opening opportunities in IT and professional services. At the same time, India will gradually lower tariffs on a large share of EU goods with safeguards for sensitive sectors. However, strict EU regulatory standards, sustainability norms, and carbon-related measures remain key challenges that could limit gains unless Indian industries upgrade compliance capacity. Overall, the agreement strengthens India’s integration with a major global market while requiring domestic reforms to fully realize its benefits.
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