India–EU Free Trade Agreement

A Strategic Leap Forward for EU Companies Entering India

The India–EU Free Trade Agreement is expected to reduce tariffs, expand market access, and strengthen economic ties between India and the European Union.

Market Entry Challenges for EU Companies

Entering a large and rapidly evolving market like India can present several structural and regulatory challenges for European companies.

Common considerations include:

Navigating tariffs and import duties across multiple product categories
Managing complex regulatory and documentation requirements
Understanding customs procedures and compliance obligations
Establishing a structured presence aligned with market access opportunities

Opportunity Overview: India–EU Free Trade Agreement

The India–EU Free Trade Agreement is expected to significantly enhance trade and investment flows between the European Union and India.

Key developments include:

Tariffs on 30% of goods imported from the EU will fall to zero immediately
96% of EU goods exports to India will see tariffs eliminated or reduced
Expanded market access for goods and services
Simplified customs rules and stronger intellectual property protections

The agreement will provide EU companies with privileged access to the world’s most populous market of 1.45 billion people and may potentially double EU goods exports to India by 2032.

Key Tariff Reductions Across Major Sectors

Industrial & Manufacturing Products

Product Category	Current Tariffs	Future Tariffs under FTA
Machinery and Electrical Equipment	Up to 44%	0%
Aircraft and Spacecraft	Up to 11%	0%
Optical, Medical and Surgical Equipment	Up to 27.5%	0% for 90% of products
Plastics	Up to 16.5%	0%
Chemicals	Up to 22%	0%
Iron and Steel	Up to 22%	0%
Pharmaceuticals	Up to 11%	0%
Motor Vehicles	110%	10%

Agri-Food Products

Product	Current Tariffs	Future Tariffs
Wine	150%	20–30%
Spirits	Up to 150%	40%
Beer	110%	50%
Olive Oil and Vegetable Oils	Up to 45%	0%
Kiwis and Pears	33%	10%
Fruit Juices and Non-Alcoholic Beer	Up to 55%	0%
Processed Food Products	Up to 50%	0%
Sheep Meat	33%	0%
Sausages and Meat Preparations	Up to 110%	50%

Services & Investment Opportunities

The agreement is expected to facilitate:

Easier provision of services such as finance, consulting, and IT

Improved investment protection and stability measures

Safeguards for intellectual property including trademarks

Strategic Positioning for EU Companies

The closer integration of the EU and Indian economies may support companies seeking to diversify supply chains.

India offers:

A large labour force
Competitive production costs
Opportunities to establish manufacturing hubs and export bases

For many EU companies, India can serve not only as a major consumer market but also as a regional production and distribution hub.

Services, Skills & Movement

Broader EU–India cooperation aims to support:

Movement of skilled professionals and students

Easier deployment of technical and management teams

Stronger people-to-people and business ties

How JurisHub Can Support Your Expansion

JurisHub provides end-to-end support for businesses expanding into India, including:

Advisory Services: Entity structuring aligned with your objectives.
Company Incorporation: Registration with the Registrar of Companies (ROC).
Ongoing Compliance: Administration, accounting, payroll, company secretarial, tax, and regulatory compliance.
Staffing Solutions: Recruitment and HR support for skilled professionals.