Chief Economic Adviser V Anantha Nageswaran said the European FTA would help exporters who took a beating because of the 50 per cent tariffs from the US. He said exporters have now found a good market in European countries.
Speaking to India Today after the release of the Economic Survey 2025-26, the CEA said, “We will all be happy if a resolution is found to the high tariffs that Indians face,” further acknowledging that it is beyond his prerogative to put a timeline to it. “In the past, I have expressed hope that it would happen within a particular timeframe, echoing the sentiments given by the commerce minister but those deadlines have passed.”
He said that the deal with the EU will create more jobs in the country. “Look at, for example, in the leather, footwear, textile, exports…in all these labour intensive sectors we now have a much lower duty access to the European markets. Of course, the agreement has to be ratified by the European parliament and that may take 6-12 months for it to become effective. But I think the opportunities for Indian exporters, particularly in labor-intensive sectors, were the ones affected by the US tariffs, and they now find a good market in European Union countries.”
Upon enforcement of the India-EU FTA, duties on 90 per cent of Indian exports will be eliminated immediately, increasing to 93 per cent within seven years. Additionally, 6 per cent of exports will benefit from tariff reductions or quota-based access.
This extensive liberalisation is expected to boost India’s labour-intensive and manufacturing sectors, as well as support export growth, job creation, and greater participation of micro, small and medium enterprises in global value chains.
The free trade agreement also opens access for India to 144 EU services sub-sectors, including information technology, professional, and technical services. It includes improved mobility provisions and allows for uncapped student movement between India and the EU.
Meanwhile, Prime Minister Narendra Modi, in his speech ahead of the Budget session of the Parliament said the manufacturers should seize this opportunity and put their best foot forward.
Modi said that the EU FTA is ambitious for India, and that new markets have opened up for manufacturers. “Offer quality products to all 27 EU member nations…Offer the best of the best quality products in the market,” he said.
