Business EconomyPosted at: May 19 2026 8:31PM


India-EU FTA to unlock major export, services opportunities: Commerce Department

New Delhi, May 19 (UNI) India's newly concluded free trade agreement with the European union is expected to open significant opportunities for exporters, labour-intensive industries and service providers, with the government now focusing on ensuring the benefits reach businesses across sectors, Darpan Jain, Additional Secretary, Department of Commerce and Industry said on Tuesday.
Addressing the Conference on Next-Gen Trade Pacts: Leveraging India's Partnership with Europe under FTAs, organised by FICCI in association with the Centre for Trade and Investment Law, Darpan Jain said India had completed one of its most important trade negotiations in recent years.
"We have climbed the mountain of negotiations. The bigger climb begins now — making it work on the ground for every exporter, every investor and every job creator across India and Europe," he said.
Jain, who is India's lead negotiator for both the India-US and India-EU free trade agreements, outlined the broad framework and commercial significance of the pact announced in January 2026.
He said 99.5 per cent of Indian exports to the European union would now receive preferential tariff treatment under the agreement.
Labour-intensive sectors such as apparel, textiles, leather, footwear, gems and jewellery which currently face EU import duties between 10 and 14 per cent and up to 26 per cent in some product categories would benefit from complete tariff elimination.
According to Jain, the agreement provides India with access to one of the world's largest consumer markets at a scale unmatched by earlier trade deals. He noted that the combined imports of India and the EU account for nearly one-third of global trade in goods and services.
He also highlighted the untapped export potential for Indian industries in Europe.
The EU imports textiles worth nearly USD 263 billion every year, but India's share in that market is only about USD 7.2 billion. Similarly, while the EU imports gems and jewellery worth around USD 80 billion annually, Indian exports account for just USD 2.7 billion.
Jain said preferential market access under the agreement creates conditions for a structural increase in India's presence across European markets, particularly in sectors that generate large-scale employment.
On the services sector, he said India's services exports had touched USD 421 billion in the current financial year, nearly matching merchandise exports of $441 billion, underlining the growing importance of services in the country's trade profile.
The agreement covers 144 out of 155 services sub-sectors in the EU and includes dedicated mobility provisions for IT professionals, contractual service suppliers and intra-corporate transferees. Jain said these provisions would help Indian professionals access opportunities in European markets more easily.
In a first-of-its-kind feature, the pact also contains a separate annexure aimed at facilitating Ayurveda and traditional medicine practitioners within EU member states, potentially opening a new avenue for India's traditional healthcare sector abroad.
Speaking at the event, James Nedumpara said the agreement had significance beyond trade and economics.
He noted that at a time when several major economies were increasingly questioning international trade commitments, the decision by India and the 27 EU member states to deepen market-opening measures represented a strong endorsement of rules-based global trade.
"The agreement is not purely about trade — it is about how we do trade," Nedumpara said.
Anant Swarup said the European union currently accounts for nearly 12 per cent of India's total merchandise trade, making it one of India's most important economic partners.
He said the key challenge now would be converting the agreement into practical gains for exporters, MSMEs and service providers, particularly by helping businesses understand and utilise the new trade provisions effectively.
Jyoti Vij said the ultimate success of the agreement would depend on the level of industry participation and preparedness.
She said FICCI has launched a nationwide outreach programme to create awareness among enterprises and improve readiness at the state level so that businesses can fully benefit from the opportunities emerging under the India-EU pact.
Meanwhile, Harish Ahuja stressed the need for stronger institutional support systems to help exporters compete effectively in European markets.
He called for improved standards infrastructure, enhanced testing and certification capabilities, better exporter awareness programmes, digital compliance tools and faster mechanisms to address non-tariff barriers that often hinder market access.
UNI SAS AKU
Please log in to get detailed story.
Tags: #India-EU FTA to unlock major export# services opportunities: Commerce Department
More News

NSE files papers for Rs 30,000 cr IPO

18 Jun 2026 | 10:45 PM

Mumbai, June 18 (UNI) The National Stock Exchange (NSE) has filed a draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on Wednesday, June 17, according to official documents.

see more..

BSH Reimagines Premium Refrigeration with India's First Perfect-Fit Four Door Side-by-Side Refrigerators

18 Jun 2026 | 10:35 PM

Pune, June 18 (UNI) As Indian consumers increasingly seek appliances that blend design, convenience, and premium living, BSH Home Appliances Pvt. Ltd., a subsidiary of BSH Hausgeräte GmbH, has entered the fast-growing Side-by-Side refrigerator category with the launch of its new Bosch and Siemens Four Door Side-by-Side Refrigerators.

see more..

Rourkela Steel Plant launches India’s 1st ERP-SAP integrated CO₂ dashboard to accelerate decarbonisation

18 Jun 2026 | 7:25 PM

Bhubaneswar, Jun 18 (UNI) In a major push towards sustainable steel production and digital environmental governance, Rourkela Steel Plant (RSP) has launched a first-of-its-kind CO₂ Dashboard featuring 100 per cent ERP-SAP based data integration to monitor and manage carbon emissions across its operations.

see more..

18 Jun 2026 | 7:20 PM

New Delhi, Jun 18 (UNI) The Government of India has assured citizens that fuel availability remains stable amid the evolving situation in West Asia, with refineries operating at high capacity and adequate stocks of petrol, diesel, and LPG maintained across the country.

see more..

ASSOCHAM Summit highlights Telangana’s push for clean energy and e-mobility

18 Jun 2026 | 6:21 PM

Hyderabad, June 18 (UNI) Experts from government, industry, research institutions and the clean technology sector deliberated on strategies to accelerate Telangana's transition towards clean energy, sustainable mobility and low-carbon industrial growth at the ASSOCHAM Telangana Clean Energy Summit 2026 held here on Thursday.

see more..