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India and the European Union have concluded negotiations on a landmark free trade agreement after nearly two decades.
The pact will cut tariffs on the vast majority of goods traded between India and the EU.
The agreement eliminates duties on almost all Indian exports to the EU, opening significant access for labour-intensive sectors such as textiles, leather, gems and jewellery. Preferential entry into the 27-nation bloc could boost Indian shipments of seafood, tea, coffee and processed food.
Indian textile and apparel producers are among the top gainers, as the EU market (worth hundreds of billions of dollars) becomes more competitive without duty barriers. Leather and footwear exporters also stand to benefit from zero tariffs. Gems and jewellery firms may see higher exports, while producers of shrimp and other seafood gain expanded access.
On the other side, some Indian industries face increased competition. European cars will enter India under lower tariff rates over a phased period, making imported vehicles more affordable. Domestic carmakers are expected to face stiffer rivalry. Lower duties on European wine, spirits and beer are likely to challenge local liquor producers.
The agreement – covering goods worth nearly two billion consumers in combined markets – protects sensitive sectors such as dairy and poultry while reshaping trade patterns. Implementation will follow legal review and ratification by both sides.
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