The Ministry of Commerce and Industry has announced that the India–European Union Free Trade Agreement creates fresh opportunities for farmers, small businesses, startups and exporters across both regions. Commerce and Industry Minister Piyush Goyal made this statement during a high-level dialogue with Belgium’s Prime Minister in Mumbai, marking a milestone after 25 years of negotiations under Prime Minister Narendra Modi’s leadership.
Key details of the FTA
The India–EU FTA brings together a market of 2 billion people, accounting for one-quarter of global GDP and one-third of world trade. The combined market value stands at USD 24 trillion. All 27 EU member states have supported the agreement.
Tariffs on more than 95 percent of goods exported by both India and the EU will be either eliminated or reduced under the pact.
India–EU bilateral trade has already grown to nearly USD 140 billion over the past decade. Belgium’s Port of Antwerp-Bruges, Europe’s second-largest seaport, is positioned as a key gateway for Indian exports into European industrial and consumer markets through its road, rail and barge networks.
Sectors identified for cooperation
Goyal outlined five major areas where India and Belgium can deepen economic ties:
- Gems and jewellery, including lab-grown diamonds, anchored around diamond centres in Antwerp, Mumbai and Surat
- Semiconductors, combining Belgium’s research capabilities with India’s manufacturing scale and talent
- Green hydrogen, leveraging India’s Green Hydrogen Mission and Antwerp-Bruges’ shipping infrastructure
- Defence and advanced manufacturing, including counter-drone systems and missile production
- Agriculture and food processing, covering potato processing, cold chains and sustainable value chains
What this means for you
If you are a farmer, manufacturer or exporter, the lower tariffs mean your products face fewer trade barriers when reaching European markets. Small businesses and startups gain access to a much larger consumer base. Workers and professionals may find expanded opportunities for mobility between India and Europe through recognition of qualifications and joint education programmes. For consumers, reduced trade barriers could eventually lead to wider product choice and competitive pricing on imported goods.