India-EU FTA: $5 Billion Export Boost Expected, Deal Nears After Two Decades

• A Free Trade Agreement (FTA) between India and the European Union (EU) is projected to boost India's exports by $3-5 billion initially.
• The deal, expected to be announced today, concludes nearly two decades of negotiations between the two economic blocs.
• The export increase is based on an estimated 5-8% rise in FTA-sensitive exports, excluding refined petroleum products.
• Refined petroleum products, India's top export to the EU ($15.0 billion in FY25), are less affected due to minimal tariffs and global oil price dependency.
• Key Indian exports to the EU include electronic goods ($11.3 billion), textiles ($7.6 billion), machinery, chemicals, and automotive products.

Why It Matters: India-EU FTA is set to boost Indian exports by up to $5 billion, concluding two decades of talks.