According to the European Union, the agreement will remove or reduce duties on over 90% of EU goods exported to India. The deal is expected to double EU exports to India by 2032 and also includes climate support funding to back India’s emissions-cutting efforts.
Also Read: India-EU FTA- The world’s biggest economies just changed global trade forever
EU exports to India already support around 800,000 European jobs, and the deal is expected to create many more.
The pact also includes €500 million in EU support over the next two years to help India cut greenhouse gas emissions and accelerate the green transition.
The pact covers major sectors such as alcohol, food products, chemicals, machinery, pharmaceuticals and aerospace.
Also Read: India-EU FTA- New Delhi cuts car tariffs from 110% to 10% for European Union
Key announcements from the EU
- EU exporters to save up to €4 billion a year in duties
- Biggest trade opening India has ever given to any partner
- Simplified customs procedures to make exports faster and cheaper
- Beer tariffs to be cut to 50%
- Spirits tariffs to be cut to 40%
- Wine tariffs to be reduced to 20–30%
- Motor vehicle tariffs will be slashed from 110% to 10% under a quota of 250,000 vehicles a year
- The EU and India are currently negotiating a separate agreement on Geographical Indications (GIs)
- Tariffs on olive oil, margarine and vegetable oils to be eliminated
- Tariffs on fruit juices and processed food to be eliminated
- Tariffs on almost all EU chemical products to be eliminated
- Duties of up to 44% on machinery to be mostly eliminated
- Duties of up to 22% on chemicals to be mostly eliminated
- Duties of up to 11% on pharmaceuticals to be mostly eliminated
- Tariffs on aircraft and spacecraft to be eliminated for almost all products
- Over 90% of EU goods exports to India will see tariffs eliminated or reduced
- €500 million in EU support over the next two years envisaged to help India cut greenhouse gas emissions
- Strong protection for EU trademarks, designs, copyrights and trade secrets
- Digital trade chapter to ensure secure, fair and predictable online commerce
- Privileged access for EU service providers in financial and maritime services
- Enhanced access expected to open new business and job opportunities
- Dedicated SME chapter
- SME contact points to help firms trade and invest more easily
- More transparency, fewer regulatory barriers
| Product | 2024 exports (EUR) | Current tariffs | Future Tariffs |
| Machinery and electrical equipment | €16.3 billion | Up to 44% | 0% for almost all products |
| Aircraft and spacecraft | €6.4 billion | Up to 11% | 0% for almost all products |
| Optical, medical and surgical equipment | €3.4 billion | Up to 27,5% | 0% for 90% of the products |
| Plastics | €2.2 billion | Up to 16,5% | 0% for almost all products |
| Pearls, precious stones and metals | €2.1 billion | Up to 22,5% | 0% for 20% of the products and tariff reduction for another 36% of the products |
| Chemicals | €3.2 billion | Up to 22% | 0% for almost all products |
| Motor vehicles | €1.6 billion | 110% | 10% (quota of 250k) |
| Iron and steel | €1.5 billon | Up to 22% | 0% for almost all products |
| Pharmaceuticals | €1.1 billion | 11% | 0% for almost all products |
EU agri-food sectors that will benefit:
| Product | Current tariffs | Future Tariffs |
| Wine | 150% | 20% (premium range); 30% (medium range) |
| Spirits | Up to 150% | 40% |
| Beer | 110% | 50% |
| Olive Oil, margarine and other vegetable oils | Up to 45% | 0% |
| Kiwis and pears | 33% | 10% in-quota |
| Fruit juices and non-alcoholic beer | Up to 55% | 0% |
| Processed food (breads, pastries, biscuits, pasta, chocolate, pet food) | Up to 50% | 0% |
| Sheep meat | 33% | 0% |
| Sausages and other meat preparations | Up to 110% | 50% |