India-EU FTA to Boost Labor-Intensive Exports Amid US Tariff Stress: Ex-Commerce Secy

• Former commerce secretary Anup Wadhawan states the India-EU FTA will boost labor-intensive exports like gems, textiles, and pharmaceuticals.
• The FTA is crucial as Indian exporters face higher duties in the US market, providing a strategic alternative for market access.
• The agreement, expected by January 27, could help products currently facing 50% US duties find a strong market in the EU.
• India's exports to the EU totaled $75.85 billion in 2024–25, making the EU India's largest trading partner.
• Wadhawan believes India can navigate non-tariff barriers like CBAM, aligning with India's climate goals, despite ongoing negotiations on carve-outs.

Why It Matters: The India-EU FTA is set to significantly boost India's labor-intensive exports, offering relief from US tariffs.