New Delhi: The prioritisation of Indian exports under the Free Trade Agreement (FTA) with the European Union (EU) is being hailed as a significant game changer by industry experts. The Confederation of Indian Industry (CII) shared this assessment on Tuesday, highlighting the vast opportunities this agreement opens for India.
The India-EU FTA is expected to unlock export potential worth $75 billion (₹6.41 lakh crore) for India. Labour-intensive sectors such as textiles, leather, marine products, and gems and jewellery stand to gain substantially, with $33 billion in exports receiving priority treatment under the agreement.
Chandrajit Banerjee, Director General of CII, described the deal as a historic achievement that strengthens India’s global trade engagement. He noted that the partnership between these two major democracies and economies, which together contribute about 25% to global GDP, marks a strategic success.
Banerjee stated, “This agreement decisively enhances India’s competitiveness in the high-value European market, firmly integrates Indian manufacturers and service providers into global value chains, and accelerates investment, technology transfer, and expansion.”
The CII further emphasised that the FTA will provide tangible benefits to labour-intensive sectors and small and medium enterprises (SMEs). By enabling a future-ready mobility framework for Indian talent, the pact lays the foundation for sustainable, inclusive, and globally competitive growth aligned with the Government of India’s vision for a developed India by 2047.
Anant Goyanka, President of the Federation of Indian Chambers of Commerce and Industry (FICCI), remarked, “The EU is India’s largest and highest potential market under recent FTAs, opening new avenues for deep economic cooperation. This will enable broader market access in manufacturing and high-value sectors, stronger value chain integration, and enhanced export competitiveness.”
Dr. Ranjit Mehta, CEO and Secretary General of PHD Chamber of Commerce and Industry (PHDCCI), projected a 35-45% increase in India’s exports to the EU over the next five years following the FTA’s implementation. He highlighted expected annual growth rates of 8-12% in pharmaceuticals and 7-10% in engineering products, including electrical machinery and industrial equipment, driven by deeper integration into European supply chains.
Dr. Mehta added that reduced tariffs, investment protection, and geographical indication recognition will reposition India from competing on volume alone to becoming a value creator in international trade.
This landmark agreement is set to reshape India-EU trade relations and significantly bolster India’s export landscape across various key sectors.
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