The conclusion of the EU-India Free Trade Agreement, a landmark achievement after 20 years of negotiations that creates the world’s largest free trade zone of 2 billion people, has been warmly welcomed.
This historic agreement demonstrates that Europe remains committed to open, rules-based trade at a time when protectionism is rising globally. While other major economies turn inward, the EU – the world’s leading trading power – is pursuing the right strategy: diversifying trade partnerships and strengthening ties with important partners. MEP Svenja Hahn (FDP, Germany), Renew shadow rapporteur for India in the committee for international trade said: “India and the EU working closer together opens a huge economic potential and strengthens the EU’s geopolitical role.
“The EU Commission now needs to ensure a fast ratification process to not lose this momentum for more international cooperation and free trade. The EU needs more trade with more partners, to diversify our supply chains and make us less dependent on China or the US.”
The agreement delivers concrete benefits for European businesses and citizens. By eliminating or reducing tariffs on 96.6% of EU exports, it will save European companies €4 billion annually and is expected to double goods exports to India by 2032.
European manufacturers gain unprecedented access to the world’s most populous market, with dramatic tariff cuts on cars, machinery, chemicals, and pharmaceuticals. European farmers will benefit from India’s massive market, while sensitive sectors remain fully protected. For small and medium-sized enterprises, dedicated support mechanisms will help them seize new opportunities.
“India is an opportunity for Europe,” added Dr Marie-Agnes Strack-Zimmermann (FDP, Germany), Renew shadow rapporteur for India in the committee for foreign affairs (AFET)
“If Europe wants to survive in a world of increasing power politics, it must treat India as what it is: a self-confident player with its own interests. This means more courage for economic cooperation, technological partnerships on an equal footing and openness to Indian talent. Only in this way can a strategic partnership be created that benefits both sides.”
