For India, the biggest gain is near-zero duty access to the EU for most of its exports over the next seven years. At the same time, three sensitive sectors, automobiles, steel and agriculture, were kept outside the tariff-free list.
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Under the deal, the EU will cut tariffs to zero in phases over seven years on Indian goods across most sectors. This gives Indian exporters long-term certainty and easier access to one of the world’s largest consumer markets.
The tariff elimination will apply to almost all goods, except auto, steel and agriculture, which were kept off the table. These areas did not make it into the zero-duty list and remain sensitive on both sides. Autos and steel involve large domestic industries with employment and strategic implications, while agriculture is linked to food security and farmer incomes.
The agreement opens the door for Indian marine and leather products, chemicals, plastics, rubber, textiles, apparel, base metals, gems and jewellery to enter the EU market at zero duty. These are labour-intensive and export-heavy sectors for India and are expected to see faster growth as costs fall and competitiveness improves.
In return, India will reduce its tariffs on EU goods to zero on 93% of the bilateral trade value over ten years. The EU will open 96.8% of its tariff lines, while India will open 92.1% of its tariff lines under the pact.