EU – India Free Trade Agreement: New Opportunities for European Businesses
We would like to inform you about the new Free Trade Agreement (FTA) between the European Union and India, which creates significant opportunities for EU exporters, including those in the agrifood and industrial sectors.
India, with a population of approximately 1.45 billion people, is one of the largest markets in the world. The new agreement, concluded in January 2026, is expected to enter into force in the coming years.
Key Benefits of the Agreement
• Tariff Reduction: Tariffs on over 96% of EU goods exports to India will be reduced or eliminated, providing preferential access to a major market.
• Cost Savings: EU exporters are expected to save up to €4 billion annually in duties, strengthening their competitiveness.
• Improved Market Access: Companies, including SMEs and agrifood producers, will benefit from reduced tariffs on many products such as olive oil, processed foods, wine, and spirits.
• High Standards: The EU’s strict food safety, health, and consumer protection standards will remain fully in place.
• Safeguard Mechanisms: The agreement includes mechanisms to allow targeted responses in case of potential market disruptions.
• Services & Intellectual Property: The agreement also improves access to services markets, strengthens intellectual property protection, and simplifies customs procedures.
The agreement opens opportunities across multiple sectors, including agrifood, machinery, medical devices, chemicals, and others. The stability it provides to trade relations, along with reduced barriers, can significantly enhance SMEs’ access to new markets.
Local SMEs that are active in or seeking to expand their exports — particularly in the agrifood and manufacturing sectors — are encouraged to assess how this new agreement can enhance their competitiveness in the Indian market. You may find more information HERE.
Furthermore, if you are interested in finding a partner in India, you can send us an email at eency@ccci.org.cy so that we can inform you about the available business opportunities published on the Enterprise Europe Network platform.
PDF – EU – India Free Trade Agreement: New Opportunities for European Businesses
