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.
Click to View MoreThe India–EU FTA promises tariff gains but faces stiff non-tariff barriers like CBAM, EUDR, and CSDDD, raising compliance costs for Indian exporters, especially MSMEs. To prevent green protectionism from eroding benefits, India must push mutual recognition, strengthen domestic capacity, and build global coalitions for a fair partnership.
Click to View MoreProtectionism is fragmenting trade and reshaping supply chains, posing risks and opportunities for India. By advancing Atmanirbhar Bharat, diversifying markets, and boosting technology-driven manufacturing, India can balance self-reliance with global integration, securing resilience and leadership in a protectionist world economy.
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