India–EU FTA: Big market, bigger opportunity

Global trade crossed USD35 trillion in 2025 for the first time, growing by about 7 per cent, but the landscape is clearly shifting.¹ In a world where trade is becoming more uncertain, access to the right markets is now critical. Countries that can build stronger partnerships and integrate deeper into global value chains will be far better positioned for long-term growth.

That is what makes the India–EU FTA particularly significant. The deal gives us access to the world’s largest trading bloc and creates opportunities across goods, services and manufacturing ecosystems.

Here are some key takeaways:

Extensive market access

The agreement provides India preferential access to 97 per cent of EU tariff lines, covering 99 per cent of trade value, unlocking entry into a USD24 trillion market with 2 billion consumers²
Immediate gains for key export sectors

Tariffs are eliminated across labour-intensive sectors like textiles and leather. This can boost price competitiveness against countries like Vietnam and Bangladesh, which have long had preferential access. For Indian firms, this is a clear chance to scale up, strengthen EU client relationships and move up the value chain through better branding and differentiation
Expansion beyond goods into services

Access to 144 EU services subsectors, along with better mobility for professionals, gives India a strong edge beyond goods.³ This opens up a clear path for firms to scale global services exports, tap higher-value opportunities and build long-term presence in European markets.

The agreement creates the opportunity. Converting it into sustained growth will now depend on how quickly businesses adapt and align with global standards.

^[1] Global trade hits record USD35 trillion as shipping patterns shift toward regional alliances, Global Trade Magazine, 11 December 2025, accessed on 18 May 2026

^[2] India-European Union (EU) free trade agreement (FTA), KPMG India, 30 March 2026, accessed on 18 May 2026

^[3] India-European Union (EU) free trade agreement (FTA), KPMG India, 30 March 2026, accessed on 18 May 2026