2026印度-欧盟自由贸易协定研究报告：深化战略伙伴关系 促进双边繁荣

Foreword As global trade recalibrates resilience andthe geopolitical landscape continues toevolve, economies are reassessing theirengagement models to protect stability,strategic autonomy and long-termcompetitiveness. In this environment,partnerships anchored in trust, scale and the FTA accelerates integration intoEuropean value chains, enhances capacityutilisation for MSMEs and strengthensmarket predictability, enabling Indianexporters to translate cost advantages intosustained market presence across key EUeconomies. Targeted commodity Equally significant are the import-sideenablers with phased duty reductions forcritical industries such as advancedmachinery, medical and surgicalequipment and aircraft parts, amongothers. In parallel, expanded access to 144EU services subsectors, supported by a As negotiations concluded in January2026, the agreement brings together acombined consumer base of nearly twobillion and provides access to a combinedmarket of USD24 trillion. It offersbusinesses greater scale, supports supplychain diversification and reinforces growthwithin a transparent, predictable and rules-based architecture across both regions. Importantly, the agreement’s valueextends beyond trade flows. Coordinatedcollaboration across security and defence,clean energy and climate action and otherstrategic areas positions the partnershipfor long-term competitiveness and co-innovation. However, outcomes mightultimately be shaped by the discipline ofimplementation. Clarity on rules of origin,strengthened quality and complianceframeworks, targeted workforce skillingand proactive alignment with evolving EU This report, ‘India-European Union (EU)Free Trade Agreement (FTA)’, explores thestrategic foundations and economicimplications of this landmark partnership. Ithighlights how the agreement serves as apowerful catalyst for deepening India-EU At its core, the agreement providespreferential access for India across ~97per cent of EU tariff lines, covering nearly99 per cent of trade value. This createsmeaningful opportunities for labour- Neeraj BansalPartner and Head –India Global Executivesummary India and the EU share a long-standingstrategic partnership anchored in shareddemocratic values, expanding economiccomplementarities and an increasinglyaligned geostrategic outlook. As globaltrade becomes more fragmented and significant milestone in advancing thepartnership beyond a predominantlytransactional trade arrangement towards abroader, innovation and technology-oriented economic framework. Theagreement is expected to serve as a key The India-EU FTA, for which negotiationsconcluded in January 2026, marks a Strategic non-trade synergies advancing India-EU partnership Facilitate cross-border Provide intellectualproperty (IP) protectionthrough high-levelsafeguards andenforcementmechanisms covering Foster criticaltechnology cooperation mobility with access to144 EU subsectors andintroduce aforward-looking mobilityframework. in emergingtechnologies such as Tableofcontents India-EU bilateral trade at a glanceIndia-EU trade engagement frameworkTariff reforms powering India’s export growthTariff revisions potentially boosting domestic valueStrategic synergies driving coordinationAccelerating India’s trade competitiveness India-EU tradeFTA highlightsExport gainsImport benefits India-EU bilateraltradeataglance The global trade environment continues toevolve, shaped by shifts in trade policies,deepening geopolitical fragmentation andvaried regulatory frameworks. Thisenvironment has amplified the strategicimperative for economies to build more Aligned with the global shift towardsresilient economic partnerships, Indiaconcluded discussions for a pivotal FTAwith the EU in January 2026, creating a USD136.5bnTotal merchandisetrade, comprising overUSD75.9 bn in exportsand USD60.7 bn inimports (FY25)1 Sustained export growth supported by the FTA is expected to benefit micro, small and medium enterprises(MSMEs) by broadening market access to the EU, deepening value chain integration and supporting job creation. Over the years, India has maintained a trade surplus with the EU, underscoring the economy’s resilientdomestic fundamentals and improving external competitiveness. Mineral fuel and oil (16.5 per cent)Electrical machinery and equipment (12 per cent) 47.8percent Nuclear reactors, boilers and mechanical appliances (22.2 per cent)Electrical machinery and equipment (19 per cent) 60.3percent Over the last decade, India-EU trade in services has more than doubled, rising byover 240 per cent, reaching over USD43 bn in exports and over USD33 bn in Top traded services Telecommunications,computer and India-EU tradeFTA highlightsExport gainsImport benefits India-EU tradeengagementframework As India and the EU continue to strengthentheir trading relationship, a substantialopportunity for further growth remains.India’s share in the EU’s total imports for greater market penetration1. The FTA ispoised to enh