India-EU FTA: $11 Billion Export Boost, Republic Day Announcement Expected

• The proposed India-EU Free Trade Agreement (FTA) could generate an additional $10-11 billion in exports for India without requiring new production capacity.
• A key strategy involves diverting existing Indian exports, particularly 12 product categories worth $21 billion currently sent to the US, towards the EU market.
• Despite stable bilateral trade at $136.5 billion and the EU becoming India's largest trading partner in FY2025, India's share in EU imports is only 2.9%.
• Over 70% of India's exports to the EU are concentrated in just five member countries, indicating untapped potential in other EU markets.
• The EU is a major foreign investor in India, contributing $119.2 billion in FDI from April 2000 to December 2024, representing 16.5% of total FDI.

Why It Matters: The India-EU FTA promises a significant export surge and strategic market diversification for Indian goods.