EU exporters will gain significant advantages under the FTA. Tariffs on 96.6% of EU goods will be eliminated or reduced, saving up to €4 billion per year in duties. This provides a competitive edge for EU companies, as India offers the largest trade opening to any partner in its history. The agreement also grants preferential access to India’s services sectors, including finance and maritime transport. Simplified customs procedures will make trade faster and easier, while intellectual property rights for trademarks, copyrights, and trade secrets will be strongly protected. The FTA even includes a dedicated chapter to support small EU businesses.
| Benefit | Description |
| Tariff Cuts | 96.6% of EU goods will see elimination/reduction of tariffs |
| Cost Savings | Up to €4 billion per year on duties |
| Competitive Advantage | Largest trade opening India has given to any partner |
| Services Market Access | Privileged access to sectors like financial services, maritime transport |
| Simplified Procedures | Easier and faster customs clearance |
| IP Protection | Safeguards trademarks, copyrights, trade secrets |
| Support for SMEs | Dedicated chapter for small EU businesses |
Key Product Benefits
Several product categories will see major benefits. Machinery and electrical equipment, currently facing tariffs up to 44%, will see nearly all duties removed over a 5–10 year phase-in period. Aircraft, optical, medical, and plastics products also benefit from similar reductions. Motor vehicles will see a 10% tariff with a quota of 250,000 units. Overall, these reductions open a significant market for European exporters while helping Indian industries access high-quality machinery and technology.
| Product | 2024 Exports | Current Tariffs | Future Tariffs | Phasing |
| Machinery & Electrical | €16.3B | Up to 44% | 0% almost all | 5–10 years |
| Aircraft & Spacecraft | €6.4B | Up to 11% | 0% almost all | 5–10 years |
| Optical, Medical, Surgical | €3.4B | Up to 27.5% | 0% for 90% | 5–10 years |
| Plastics | €2.2B | Up to 16.5% | 0% almost all | 7–10 years |
| Precious Stones & Metals | €2.1B | Up to 22.5% | 0–36% | 5–10 years |
| Chemicals | €3.2B | Up to 22% | 0% almost all | 5–10 years |
| Motor Vehicles | €1.6B | 110% | 10% (250k quota) | – |
| Iron & Steel | €1.5B | Up to 22% | 0% almost all | 5–10 years |
| Pharmaceuticals | €1.1B | 11% | 0% almost all | 5–10 years |
Services Commitments & Intellectual Property
The FTA is ambitious in services as well. India has committed to bind its current level of liberalization for services, exceeding its obligations to other partners. This includes dredging and maritime cable-laying services, important for EU companies. The agreement enhances transparency requirements for senior management and boards while maintaining local presence obligations. Intellectual property protection is strengthened, covering trademarks, copyrights, designs, trade secrets, and plant varieties, ensuring robust enforcement on both sides.
| Area | Benefit |
| Liberalisation | India binds service liberalisation levels exceeding commitments with UK & Australia |
| Dredging & Cable-laying | First-time binding, securing EU interests |
| Governance & Transparency | Obligations on senior management, local presence |
| Intellectual Property | Strong protection for trademarks, copyrights, designs, trade secrets |
