On paper, both are “free trade agreements.” In practice, they open very different doors.
One deal rolls out the red carpet for bankers, consultants and tech professionals. The other rolls in planes, cars and European food brands. Together, they show how India is opening its market, carefully.
Also Read: India offers EU auto quota six times larger than UK deal
The UK deal: A passport for services and talent
The India–UK agreement is built around services. London wanted access to India’s fast-growing economy of finance, education, telecom and consulting and it got it.
UK firms now find it easier to operate in India, bid for projects, and invest. The pact also smoothens mobility for professionals and investors, making it simpler for British talent to work with Indian companies.
On goods, India gave ground but slowly. Duties on items like whisky and auto parts will fall over time. Cars enter India only under a quota system, which keeps mass-market competition in check. What India did not open is just as important. Farming, dairy, fruits, vegetables and staples remain protected. So do big consumer and strategic manufacturing sectors. The message: services yes, sensitive sectors no.
The UK gains access where it is strongest:
• Financial, legal and professional services
• Education, telecom and digital services
• Easier movement for professionals and investors
• Limited but symbolic entry for cars and spirits
The EU deal: Welcome to the factory floor
The EU agreement is all about goods. Europe wanted deeper access to India’s market for industrial and high-value products– and this is where India moved decisively.
Tariffs will be cut or eliminated on more than 90% of EU exports. Aircraft and spacecraft parts go almost duty-free. So do machines, chemicals and many pharmaceutical inputs. That gives European aerospace and engineering companies a big runway in India.
Also Read: India-EU FTA highlights- ‘Mother-of-all deals’ eliminates aircraft tariffs, cuts duties on alcohol, food & chemicals
Then comes the lifestyle shift. Beer, wine, spirits, olive oil, fruit juices and processed foods from Europe will land in India with much lower duties. European brands get closer to Indian consumers than ever before.
Alongside trade, the EU is also putting money on the table, about €500 million over two years to support India’s climate and emissions-cutting efforts.
Europe gains deep access to India’s industrial and consumer market:
• Aircraft and spacecraft parts: almost all go to zero duty
• Machinery and electrical equipment: tariffs of up to 44% mostly eliminated
• Chemicals and pharmaceuticals: duties largely removed
• Beer, wine and spirits: big tariff cuts
• Olive oil, fruit juices and processed food: zero duty
What India protected
Even while opening up, India drew clear lines. Dairy, cereals, pulses and other politically sensitive farm goods stay shielded. So do parts of manufacturing where India is building capacity under Make in India and PLI schemes.
This is not a free-for-all. It is a controlled opening.