India-EU FTA deal has been signed while strengthening economic and political ties at a time of rising geopolitical tensions and global economic challenges. The EBNW Story brings in key facts:
- * The largest trade agreement that both the EU and India have ever concluded.
- * A market of two billion people and close to a quarter of global GDP.
- * Cutting over 90% of tariffs: expected to double annual EU exports to India.
- * Upholding European standards and promoting sustainable trade.
Key facts about India
- 4th largest economy in the world.
- The EU’s 9th largest trading partner.
- Annual GDP: €3.4 trillion.
- Population: 1.45 billion people.
- EU exports: €75 billion – goods: €48.8bn, services €26bn (2024)
- EU investment stocks: €140.1 billion (2023)
- EU jobs supported by EU exports to India: 800,000
Top 10 European exports to India (2024 – billion euro)
Key benefits for EU exporters
- Saving up to €4 billion per year in duties on European products.
- Tariffs on 96.6% of EU goods exports will be eliminated or reduced.
- Competitive advantage for EU exporters, with the biggest trade opening India has given to any trade partner.
- Privileged access to Indian services market in key sectors, e.g. financial services and maritime transport.
- Simplification of customs procedures to make exports quicker and easier.
- Protection of EU intellectual property, such as trademarks.
- A dedicated chapter for small EU businesses.
| Product | 2024 exports (EUR) | Current tariffs | Future Tariffs | Staging |
| Machinery and electrical equipment | €16.3 billion | Up to 44% | 0% for almost all products | Up to 10 years (mostly 5-7) |
| Aircraft and spacecraft | €6.4 billion | Up to 11% | 0% for almost all products | Up to 10 years (mostly 5) |
| Optical, medical and surgical equipment | €3.4 billion | Up to 27,5% | 0% for 90% of the products | Up to 10 years (mostly EIF, 5 or 7) |
| Plastics | €2.2 billion | Up to 16,5% | 0% for almost all products | Up to 10 years (mostly 7) |
| Pearls, precious stones and metals | €2.1 billion | Up to 22,5% | 0% for 20% of the products and tariff reduction for another 36% of the products | Up to 10 years (mostly 5) |
| Chemicals | €3.2 billion | Up to 22% | 0% for almost all products | Up to 10 years (mostly EIF) |
| Motor vehicles | €1.6 billion | 110% | 10% (quota of 250k) | |
| Iron and steel | €1.5 billon | Up to 22% | 0% for almost all products | Up to 10 years (mostly EIF, 5 or 7) |
| Pharmaceuticals | €1.1 billion | 11% | 0% for almost all products | Up to 10 years (mostly 5 or 7) |
Ambitious services commitments
- * Binding of current level of liberalisation for services sectors exceeding India’s commitments with any other trading partner, including the UK and Australia
- * Binding of dredging and maritime cable-laying services for the first time, satisfying key economic interests of the EU
- * Enhanced transparency through obligations on senior management and boards of directors and local presence
Intellectual property protected
- The agreement provides a high level of protection and enforcement of IP rights, including with respect to copyright, trademarks, designs, protection of trade secrets and undisclosed information, and plant varieties. It foresees that each Party will have measures, procedures and remedies to ensure the enforcement of intellectual property rights.