India-EU FTA Finalized: Boost for Exports, Diversification, and Economic Growth

• India and the European Union have concluded negotiations for a Free Trade Agreement (FTA), marking India's 19th trade deal.
• The FTA aims to significantly boost India's exports to the 27-nation EU bloc, helping diversify shipments and reduce dependence on China.
• Lower or zero import duties under the FTA will make Indian goods (garments, pharmaceuticals, textiles) and services (telecommunications, business services) more competitive in the EU market.
• The EU will benefit from increased exports of aircraft, electrical machinery, diamonds, and chemicals to India, alongside gains in service sectors like intellectual property and IT.
• Bilateral trade in goods between India and the EU was USD 136.53 billion in 2024-25, with the EU being India's largest goods trading partner.

Why It Matters: The India-EU FTA is set to significantly enhance trade, diversify markets, and foster economic growth for both regions.