EU–India Free Trade Agreement | Key Benefits
The forthcoming Free Trade Agreement between the European Union and India is expected to constitute the most significant trade agreement ever concluded by either side, further strengthening economic and political ties at a time of increasing geopolitical uncertainty and global economic challenges.
The agreement will establish a comprehensive framework for cooperation across a market of approximately two billion consumers, representing nearly one quarter of global GDP. It foresees the elimination or reduction of tariffs on 96.6% of EU exports of goods to India and an overall reduction of more than 90% of tariff duties. As a result, EU exports to India are projected to double, generating annual tariff savings estimated at up to €4 billion for European businesses.
In addition, the agreement aims to ensure the protection of European regulatory standards and to promote sustainable development, while facilitating improved access to the Indian market for European service providers in key sectors such as financial services and maritime transport. It also includes provisions for the simplification of customs procedures, the strengthening of intellectual property protection, and a dedicated framework to support the internationalisation of small and medium-sized enterprises (SMEs).
Particular significance is attached to the agri-food sector. The agreement provides for a substantial reduction of the often prohibitive Indian tariffs, which currently exceed an average of 36% for EU agri-food products. At a time when EU agri-food exports to India have already nearly tripled in value between 2020 and 2024, the agreement is expected to unlock significant opportunities for European producers in a market of approximately 1.5 billion consumers.
Indicatively, tariffs on wine are expected to be reduced from levels of up to 150% to 20–30%, tariffs on olive oil from 40% to zero, and tariffs on processed food products — including bakery and confectionery — from up to 30% also to zero.
At the same time, the agreement maintains full protection for sensitive European agricultural sectors. EU tariffs on products such as beef, poultry, rice and sugar will remain in place, while all imports from India will continue to be subject, without exception, to the European Union’s strict food safety and public health standards.
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