- Country or region
- India
- Trade topics
- Negotiations and agreements
Strengthening economic and political ties at a time of rising geopolitical tensions and global economic challenges.
- The largest trade agreement that both the EU and India have ever concluded.
- A market of two billion people and close to a quarter of global GDP.
- Cutting over 90% of tariffs: expected to boost annual EU exports to India.
- Upholding European standards and promoting sustainable trade.
Key facts about India
- India is a major world economy.
- The EU’s 9th largest trading partner.
- Annual GDP: €3.4 trillion.
- Population: 1.45 billion people.
- EU exports: €75 billion - goods: €48.8bn, services €26bn (2024)
- EU investment stocks: €140.1 billion (2023)
- EU jobs supported by EU exports to India: 800,000
Key benefits for EU exporters
- Tariffs on 96.6% of EU goods exports will be eliminated or reduced.
- Saving up to €4 billion per year in duties on European products.
- Competitive advantage for EU exporters, with the biggest trade opening India has given to any trade partner.
- Privileged access to Indian services market in key sectors, e.g. financial services and maritime transport.
- Simplification of customs procedures to make exports quicker and easier.
- Protection of EU intellectual property, such as trademarks.
- A dedicated chapter for small EU businesses.
| Product | 2024 exports (EUR) | Current tariffs | Future Tariffs | Staging |
| Machinery and electrical equipment | €16.3 billion | Up to 44% | 0% for almost all products | Up to 10 years (mostly 5-7) |
| Aircraft and spacecraft | €6.4 billion | Up to 11% | 0% for almost all products | Up to 10 years (mostly 5) |
| Optical, medical and surgical equipment | €3.4 billion | Up to 27,5% | 0% for 90% of the products | Up to 10 years (mostly EIF, 5 or 7) |
| Plastics | €2.2 billion | Up to 16,5% | 0% for almost all products | Up to 10 years (mostly 7) |
| Pearls, precious stones and metals | €2.1 billion | Up to 22,5% | 0% for 20% of the products and tariff reduction for another 36% of the products | Up to 10 years (mostly 5) |
| Chemicals | €3.2 billion | Up to 22%
| 0% for almost all products | Up to 10 years (mostly EIF) |
| Motor vehicles | €1.6 billion | 110% | 10% (quota of 250k) | |
| Iron and steel | €1.5 billon | Up to 22% | 0% for almost all products | Up to 10 years (mostly EIF, 5 or 7) |
| Pharmaceuticals | €1.1 billion | 11% | 0% for almost all products | Up to 10 years (mostly 5 or 7) |
Ambitious services commitments
- Binding of current level of liberalisation for services sectors exceeding India’s commitments with any other trading partner, including the UK and Australia
- Binding of dredging and maritime cable-laying services for the first time, satisfying key economic interests of the EU
- Enhanced transparency through obligations on senior management and boards of directors and local presence
Intellectual property protected
- The agreement provides a high level of protection and enforcement of IP rights, including with respect to copyright, trademarks, designs, protection of trade secrets and undisclosed information, and plant varieties.
- The agreement foresees that each Party will have measures, procedures and remedies to ensure the enforcement of intellectual property rights.
New opportunities for EU farmers
- Reducing often prohibitive tariffs (over more than 36% on average on EU agri-food products)
- Helping reach the full potential of a market of 1.5 billion people. From 2020 to 2024, EU agri-food exports to India have already almost tripled in value.
| Product | Current Tariff | New Tariff |
| Wines | Up to 150% | 20-30% |
| Olive Oil | 40% | 0% |
| Processed food (e.g. bread, confectionery) | Up to 30% | 0% |
- Sensitive European agricultural sectors fully protected: EU tariffs on products such as beef, poultry, rice and sugar stay in place.
- All Indian imports must respect the EU’s strict health and food safety rules, with no exception.
Fostering sustainable trade
The Trade and Sustainable Development Chapter sets out a comprehensive framework on trade and sustainable development, which:
- enhances environmental protection and addresses climate change
- protects workers’ rights
- supports women’s empowerment
- provides for a platform for dialogue and cooperation on trade related environmental and climate issues
- ensures an effective implementation mechanism
It protects both parties’ right to regulate and makes sure that the parties will not weaken, waive, or fail to enforce their laws to encourage trade or investment.
The agreement also offers civil society organisations an active role to monitor the implementation of the agreement.