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India–EU Free Trade Agreement (FTA) is being widely described as the “Mother of All Trade Deals” because of its unprecedented economic scale, global trade coverage, and long-term strategic impact. This agreement brings together the 2nd and 4th largest economies in the world and covers nearly 25% of global GDP and almost one-third of global trade, making it one of the most significant trade frameworks ever negotiated.

WHY THE INDIA–EU FTA IS A GLOBAL GAME-CHANGER

The India–EU FTA is not limited to tariff reduction. It restructures global trade flows, services mobility, technology cooperation, MSME expansion, and climate-aligned manufacturing. In a single framework, the agreement delivers large-scale tariff elimination, near-total duty-free access for Indian exports, a 75 billion dollar export acceleration opportunity, deep services market access, and a future-ready trade architecture aligned with sustainability and advanced technology.

9,425 TARIFF LINES ELIMINATED: WHAT IT MEANS

Under the India–EU FTA, tariffs on 9,425 tariff lines have been eliminated for Indian goods entering the European Union. Over 99 percent of India’s export value will now enter the EU duty-free. This significantly improves cost competitiveness for Indian exporters, strengthens pricing power for Indian MSMEs, and positions Indian goods ahead of non-FTA competitors in European markets.

75 BILLION DOLLAR EXPORT ENGINE FOR INDIA

The agreement unlocks a direct export pipeline worth 75 billion dollars, equivalent to approximately 6.41 lakh crore rupees. This creates preferential access to high-value European consumers and enables large-scale expansion for Indian manufacturers and MSMEs. The deal ensures long-term demand certainty and strengthens India’s export-driven growth strategy.

COVERAGE OF 25 PERCENT OF GLOBAL GDP

The India–EU FTA connects economies that together account for 25 percent of global GDP and nearly one-third of global trade. It links the 2nd and 4th largest economies globally and places India at the centre of global value chains, reinforcing its role as a key manufacturing and export hub.

ZERO-DUTY MARKET ACCESS ADVANTAGE

Indian exporters gain zero-duty market access across the European Union. Trade friction is reduced, compliance becomes more predictable, and Indian products gain a competitive edge over exporters from countries without similar trade agreements. This boosts investor confidence and export scalability.

SERVICES, SKILLS AND TALENT MOBILITY

India gains predictable access to 144 European Union service sub-sectors, including information technology, financial services, education, and professional services. The agreement provides a guaranteed post-study visa framework of at least nine months for students.

WHY INDIAN MSMES BENEFIT THE MOST
The India–EU FTA is structured to support Indian MSMEs by lowering entry barriers to European markets, reducing compliance uncertainty, supporting carbon transition, and integrating MSMEs into advanced European value chains. This creates long-term growth visibility and export sustainability.

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