Factsheet on India-EU trade deal

Bilateral merchandise trade between India and the EU has demonstrated sustained growth, valued approximately at Rs 11.5 Lakh Crore (USD 136.54 billion) in 2024-25, with India exporting roughly Rs 6.4 Lakh Crore (USD 75.85 billion) to the EU. India-EU trade in services reached Rs 7.2 Lakh Crore (USD 83.10 billion) in 2024.

The FTA provides an unparalleled pathway and holds immense promise for both, India and the EU, to emerge as each other’s major economic partners.

India Secures Strategic Access to European Markets

India has gained preferential access to the European markets across 97 per cent of tariff lines, covering 99.5 per cent of trade value

• 4 per cent tariff lines covering 90.7 per cent of India’s exports will have immediate duty eliminationfor important labour-intensive sectors such as textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery and certain marine products, amongst others

20.3 per cent tariff lines covering 2.9 per cent of India’s exports will have zero duty access over 3 and 5 years for certain marine products, processed food items, arms and ammunition, amongst others;

• 1 per cent tariff lines covering 6 per cent of India’s exports will have preferential access by way of tariff reductionfor certain poultry products, preserved vegetables, bakery products amongst others or through tariff rate quotas (TRQs) for cars, steel, certain shrimps/ prawns products, amongst others.

*Key labour-intensive sectors (such as textiles, apparel, marine, leather, footwear, chemicals, plastics/rubber, sports goods, toys, gems, and jewellery), comprising more than Rs. 2.87 Lakh

*USD 33 billion of exports that are currently subjected to import duty between 4 per cent to 26 per cent in the EU and are crucial for employment generation, will enter zero duty from entry into force of the FTA and thus gain enhanced competitiveness in the EU market. These sectors are poised to benefit from tariff liberalisation and enhanced competitiveness, enabling deeper integration into global and European value chains and simultaneously creating job opportunities.

India’s offer to the European Union

Overall, India is offering 92.1 per cent of its tariff lines which covers 97.5 per cent of the EU exports

• per cent of tariff lines will have immediate duty elimination

39.5 per cent of tariffs lines are subject to phased elimination over 5, 7, and 10 years

3 per cent of products are under phased tariff reductions and few products are subject to TRQs for Apples, Pears, Peaches, Kiwi Fruit.

Imports of EU’s high technology goods are expected to diversify India’s import sources, thereby reducing input costs for businesses, benefit consumers and will create opportunities for Indian businesses to integrate into global supply chains.

For more read here: https://www.pib.gov.in/PressReleasePage.aspx?PRID=2219146&v=1&reg=3&lang=2