Mature and Pragmatic: India-EU FTA Advances with Near-Zero Tariffs
Mature and Pragmatic: India-EU FTA Advances with Near-Zero Tariffs
The India-EU free trade agreement promises near-zero tariffs on most goods, but CBAM, investment reforms, and multi-country approvals pose challenges.
The India-EU Free Trade Agreement marks a major milestone, offering near-zero tariffs on most goods and strategic protections for sensitive sectors.
Indian negotiators secured favourable terms, but key hurdles remain with CBAM, reforms to foreign investment, and the multi-country approval process.
From textiles and IT services to automobiles and wine, the deal could reshape global trade flows and boost Indian exports, jobs and investments. Analysts say the agreement could attract more European investment into India's manufacturing base, while Indian firms gain easier access to European markets.
Officials say a technical group will address CBAM concerns and India's decarbonisation efforts will be supported, with further rounds expected to resolve outstanding issues and cement the broader strategic partnership.
