We use cookies to enhance your browsing experience, serve personalized ads or content, and analyze our traffic. By clicking "Accept All", you consent to our use of cookies. Cookie Policy
Customize Consent Preferences
We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.
The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ...
Always Active
Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.
No cookies to display.
Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.
No cookies to display.
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.
No cookies to display.
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
No cookies to display.
Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.
India and the European Union (EU) have resolved to conclude a free trade agreement (FTA) by the end of this year. As negotiations progress, key elements of New Delhi’s trade relationship with Brussels are under discussion.
Trade Figures
The EU is India’s second-largest trading partner. Over the past few years, India’s export and import trends with the EU have fluctuated significantly:
FY21: Exports stood at $41.3 billion, while imports were $39.7 billion.
FY22: Exports rose to $64.9 billion, and imports reached $51.4 billion.
FY23: Exports surged to $74.8 billion, with imports at $61 billion.
FY24: Exports slightly increased to $75.9 billion, while imports dipped to $61.4 billion.
FY25 (April-Nov): Exports have recorded $50.6 billion so far, with imports at $38 billion.
India’s Top Exports to the EU
India’s Top Imports from the EU
Key Goals of the FTA
Conclude FTA talks by the end of the year.
Investment protection agreement and geographical indications pact also in progress.
Digital public infrastructure to enhance interoperability.
Mutual recognition of e-signatures to facilitate cross-border digital trade.
WTO Dispute
The EU has challenged India’s import duty on some ICT products, while India is resisting the EU’s domestic enforcement regulation pressure. A 2019 dispute arose over India’s 7.5% duty on specific imports.
What the EU Wants
Lower import duties on cars, alcoholic beverages.
Share in India’s government procurement.
India’s Key Demands
Recognition as a data-secure country.
Easier work access for its skilled professionals in the EU.
More market access for textiles, chemicals.
Lower tariffs on its textiles, leather, and product exports.
Trade Irritants
EU’s green measures such as CBAM, Deforestation Regulation pose compliance challenges for India.
India’s quality control orders impact EU exports.
EU’s traceability norms for textiles, EV batteries are also points of contention.
