PHDCCI’s reaction on India-EU FTA
City Air News
Jan 27, 2026 09:17
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"India is the EU’s 9th largest trading partner, accounting for 2.2% of the EU's total trade in goods in 2023. Trade in services between the EU and India reached €59.7 billion in 2023, up from €30.4 billion in 2020.
The EU–India Free Trade Agreement (FTA), alongside the Investment Protection Agreement (IPA) and Geographical Indications (GI) Agreement, is expected to generate a sustained expansion in India’s exports to the European Union with India’s overall exports to the EU are estimated to grow by 35–45% over a five-year period following implementation. Pharmaceuticals are expected to record 8–12% annual growth, along with Engineering goods which include electrical machinery and industrial equipment, could grow at 7–10% annually, with deeper integration into European supply chains. Auto components and emerging electric-vehicle components, a key industry in terms of employment generation in India, are projected to experience faster growth, in the range of 10–15% annually, and potentially higher for EV-linked products, given currently high EU tariffs and India’s cost competitiveness.
Combination of tariff reduction, investment protection, and geographical indication recognition will reposition India as a value creator rather than competing only on volumes."
Dr Ranjeet Mehta, CEO & Secretary General, PHDCCI
