India-EU FTA: Goldman Sachs Predicts Trade Rewiring, Sector Winners Emerge

• The India-EU Free Trade Agreement (FTA), 20 years in the making, is seen by Goldman Sachs as a major global trade realignment amid rising protectionism.
• The pact covers approximately 2 billion people, 25% of global GDP, and a quarter of the world's population and trade.
• India will eliminate or reduce tariffs on 96.6% of EU goods, saving EU exporters an estimated EUR4 billion annually, particularly in autos, machinery, chemicals, and aerospace.
• Key sectors like machinery, medical equipment, chemicals, pharmaceuticals, plastics, and aerospace will see tariffs drop to zero, while auto tariffs will fall from 110% to 10% under a quota.
• Goldman Sachs identifies EU autos, chemicals, and electrical machinery as the main short-term beneficiaries, with European companies exposed to India gaining investor attention.

Why It Matters: The India-EU FTA is set to significantly reshape trade, creating substantial sector-specific benefits despite limited near-term macroeconomic impact.