Indian exporters are expected to get huge benefits as soon as the free trade agreement with the European Union is implemented. Under the agreement, the EU will completely eliminate import duties on about 90 percent of Indian goods on the very first day, while duties on the remaining about three percent of goods will be phased out over the next seven years.

News agency PTI quoted officials as saying that in this way the EU is giving concessions to India on about 99.5 percent of the trade value. It is believed that this agreement will be formally signed by the end of this year and it is likely to come into force in early 2027, although some provisions may come into effect from the beginning of next year.

On the other hand, India will also make major concessions to the EU, but this process will be relatively slow. India will give duty-free access to about 93 percent of EU goods over the next ten years, while duties will be removed on only 30 percent of European goods on the first day of the agreement.

Apart from this, India will also give duty concessions and quota-based reductions on 3.7 percent of trade value to the EU. Overall, India will receive duty relief on approximately 97.5 per cent of the trade value to the EU, providing a strong long-term basis for trade and investment between the two economies.