← External Forces: Trade, Geopolitics & Market Access (all topics)
India-EU free trade agreement
What it is
A comprehensive trade and investment agreement between India and the European Union, negotiated over several rounds and concluded after a long hiatus. The EU is among India's largest trading partners and the agreement covers goods, services, investment and sustainability chapters
It runs alongside the India-UK CETA in force from Jul 2026 and the UAE CEPA
Impact on industries
- Opens a large developed market for textiles, apparel, footwear, gems and jewellery, marine products and engineering goods that currently face EU duties
- Diversifies export dependence away from the US, which the 2025-26 tariff episode showed can reset without warning
- EU sustainability and due-diligence requirements travel with market access, so CBAM and deforestation rules apply regardless of tariff relief
- Reciprocal opening in automobiles, spirits and machinery favours EU exporters, and benefit depends on rules of origin and meeting EU standards