By Admin 
India-EU Trade Deal: The trade deal between India and the European Union (EU) is no longer limited to just negotiations. It is now in the final stages. This can be formally announced in the India-EU summit to be held on 27 January. According to a new report, this agreement can prove to be a big opportunity for Indian exporters.
After the deal, if some goods sent to America start being sent to Europe, then India can export additional US dollars 10 to 11 billion. Tariffs will be reduced and market access will be easy, which will open new avenues for both India and EU.
How will both countries benefit?
According to a report by Rubix Data Sciences cited by Business Today, the top 15 categories of goods that India exports to America are worth about US $ 45 billion. These include jewelery and gems, pharmaceuticals, petroleum products etc. The presence of 12 of these categories is very less in the EU. That is, these goods are sent in small volumes to the countries included in the European Union, whose value is approximately 21 billion US dollars. If even half of these exports from America gradually start shifting to the EU, then this could bring a big change in the trade between the two countries.
This is also why FTA is necessary
The Rubix Data Sciences report also revealed that the annual trade between India and the EU remained stable at around US $ 136.5 billion between FY2023 and FY2025. This is despite the EU overtaking the US to become India’s largest trading partner in the year 2025. Earlier the European Union had given tariff exemption for some Indian products under the Generalized System of Preferences (GSP), but after the withdrawal of GSP tariff preference on the import of about 87 percent of Indian goods from January 1 this year, there is a need to increase the scope of bilateral trade.
Not just one but many benefits of FTA
The economy of the EU is approximately US $ 21 trillion and its trade with other countries is approximately US $ 5.4 trillion. Despite this, India’s share in EU’s imports is only 2.9 percent, while its share in EU’s exports is 1.9 percent. It is also a matter of concern that more than 70 percent of India’s exports to EU are from only five member countries.
As a result, any economic slowdown in these countries can have a direct impact on India. EU is also a big investor for India. EU investment of about US $ 119 billion came into India between 2000 and 2024. If services, investment protection and regulatory alignment are agreed upon under FTA, then this relationship can become stronger.
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