After a decade-long hiatus, India and the European Union have concluded a historic India – EU Free Trade Agreement (FTA), establishing a “trusted partnership” between the world’s 4th and 2nd largest economies. Re-initiated in 2022, these intense negotiations have culminated in a deal that unites a combined market estimated at over INR 2091.6 Lakh Crore (USD 24 trillion), setting a foundation for inclusive and future-ready economic growth.
The agreement promises substantial economic benefits, with India securing preferential access to European markets across 97% of tariff lines, which covers 99.5% of trade value. This specifically boosts labor-intensive sectors like textiles and leather through immediate duty elimination. Reciprocally, the EU gains access to 92.1% of India’s tariff lines, marking a significant step in supply-chain diversification and showcasing India as a sustainable, rule-focused trade partner.
Download: Download the full Tax Alert PDF here
