Prime Minister Narendra Modi speaks during a joint press statement with European Council President Antonio Costa and European Commission President Ursula von der Leyen at the Hyderabad House in New Delhi, India. Both sides announced that they have sealed the mother of all trade deals after years of negotiations. Reuters
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Firstpost28-01-2026, 09:39

India-EU Trade Deal: How States Like UP, Maharashtra, Kerala Stand to Gain

  • The India-EU Free Trade Agreement (FTA) is sealed but awaits formal signing and ratification, a process expected to take 12-24 months.
  • The deal aims to boost Indian exports by Rs 6.4 lakh crore, widening market access across sectors by easing tariffs and regulatory barriers.
  • Uttar Pradesh will see employment growth in leather, crafts, electronics, and agri-products, benefiting Kanpur, Agra, Saharanpur, and Noida.
  • Maharashtra's textiles, electronics, pharma (Thane-Raigad), and gems & jewellery (Mumbai) sectors will benefit from tariff reductions.
  • Southern states like Karnataka, Andhra Pradesh, Telangana, and Tamil Nadu will gain from increased exports in manufacturing, seafood, textiles, and electronics.

Why It Matters: The India-EU FTA promises significant economic benefits and export growth for various Indian states and sectors.

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