EU–India Trade Agreement: what does it mean for business?
The European Commission has published the text of the Free Trade Agreement between the European Union and India (FTA), which may significantly reshape the balance of power in global trade. This is not another standard trade agreement – it represents a strategic shift towards one of the largest and most demanding markets in the world.
Negotiations on the agreement had been ongoing – with interruptions – since 2007, and their resumption in 2022 led to the conclusion of talks in January 2026 during the EU–India summit in New Delhi. The scale of this agreement is unprecedented – it covers an area inhabited by nearly 2 billion people and a significant share of the global economy. It is estimated that EU exports to India could even double by 2032.
From a business perspective, the key factors are the tangible outcomes: the elimination or reduction of duties on more than 96% of goods originating in the EU and potential savings for exporters of approximately EUR 4 billion annually. In practice, this means a real opening of a market that has so far been characterised by high tariff barriers – in some sectors, such as automotive, duties have reached as much as 100% or more.
– This is a breakthrough change, but it does not mean an automatic simplification of trade. In practice, it will be crucial to prepare companies for the new conditions – especially in terms of rules of origin and documentation – emphasises Joanna Porath, owner of the customs agency AC Porath.
The agreement also provides for a number of procedural facilitations and increased predictability in trade. It covers not only trade in goods, but also services, digital trade, intellectual property protection, competition, support for SMEs, and dispute settlement mechanisms. For businesses, this means not only lower costs, but also greater operational security and a reduction in the risk of so-called “customs surprises.”
At the same time, it should be noted that the published document is, at this stage, of an informational nature – before it enters into force, it must be ratified by both the European Union and India. This means that businesses still have time to prepare for the upcoming changes.
– Companies that start analysing their supply chains, tariff classification and origin of goods today will be in a much stronger position when the agreement enters into force. In international trade, advantage is not built at the moment of reaction, but at the planning stage – points out Joanna Porath.
From the perspective of the TSL sector and importers, this means one thing: the upcoming changes will not be a “day-one revolution”, but they represent a significant opportunity for those capable of thinking strategically. In the new reality, success will not depend solely on speed, but above all on those who prepare their processes, data and operational structures in advance to take advantage of new opportunities.
