New Delhi’s trade landscape is set for a seismic shift with the impending India-EU Free Trade Agreement (FTA). Industry leaders from the Confederation of Indian Industry (CII) hail it as a monumental game-changer, unlocking export opportunities worth $75 billion across key sectors.
Labor-intensive industries like textiles, leather, seafood, gems, and jewelry stand to gain the most, with $33 billion in exports poised for preferential access. This strategic pact not only fortifies India’s position in global supply chains but also bridges two economic powerhouses whose combined GDP share nears 25% of the world total.
CII Director General Chandrajit Banerjee emphasized the deal’s transformative potential. ‘This historic agreement decisively enhances India’s competitiveness in the EU’s high-value market,’ he stated. It empowers manufacturers and service providers, accelerates investment and technology flows, and integrates India deeper into global value chains.
The FTA promises tangible benefits for SMEs and labor-heavy sectors while enabling future-ready mobility for Indian talent. Aligning seamlessly with India’s vision of a developed nation by 2047, it lays the groundwork for sustainable, inclusive growth.
FICCI President Anant Goenka described the EU as India’s largest and highest-potential FTA market yet. ‘It opens doors to expansive market access in manufacturing and high-value sectors, bolstering supply chain integration and export competitiveness,’ he noted.
PHDCCI CEO Dr. Ranjeet Mehta forecasts a 35-45% surge in India’s EU exports over the next five years post-implementation. Pharmaceuticals could see 8-12% annual growth, while engineering goods—including electrical machinery and industrial equipment—may achieve 7-10% yearly increases through deeper EU supply chain ties.
By slashing tariffs, safeguarding investments, and recognizing geographical indications, the FTA repositions India not just as a volume player but as a value creator on the global stage. This pact signals a new era of robust economic collaboration.
