India, Jan. 29 -- The Government of India has issued a release:
(Values in USD million; CY 2024)
Sectors
Duty Range
Duty Free at Entry into Force
Tariff Elimination in Phases
% Tariff Lines
India's Exports to EU
% Tariff Lines
India's Exports to EU
Marine Product
Upto 26.0
94.4%
239.0
1.9%
673.2
Chemicals
Upto 12.8
59.3%
13683.6
39.1%
354.0
Plastic/Rubber
Upto 6.5
62.7%
2556.4
37.3%
109.5
Leather/Footwear
Upto 17.0
100.0%
2511.4
0.0%
0.0
Textiles
Upto 12.0
100.0%
1636.0
0.0%
0.0
Apparel and Clothing
Upto 12.0
100.0%
5706.3
0.0%
0.0
Gems & Jewellery
Upto 4.0
96.6%
2661.3
3.4%
1.1
Base Metals
Upto 10.0
79.1%
3350.6
20.9%
164.7
Railway/Aircraft/Ships/Boats
Upto 7.7
88.2%
232.9
11.8%
0.3
Furniture & Lighting Misc Consumer Goods
Upto 10.5
94.2%
817.7
5.8%
5.0
Toys
Upto 4.7
100.0%
58.8
0.0%
0.0
Sports goods
Upto 4.7
100.0%
43.6
0.0%
0.0
TOTAL
-
-
33497.6
-
1307.8
[*] DISCLAIMER: This is published for information purposes only, does not create any legal obligations and may undergo further modifications including as a result of the process of legal revision/ scrub and final approvals.
INDEX.. 1
Trade in Goods. 2
Trade in Services. 5
Rules of Origin and Origin Procedures. 9
Trade Remedies. 14
Technical Barriers to Trade. 16
Intellectual Property. 17
Trade and Sustainable Development 19
Subsidies. 22
Transparency, Exceptions, Administrative and Final Provisions. 23
Rapid Reaction Mechanism.. 28
Sustainable Food System.. 29
Response: India's total merchandise trade with the EU was USD 136.54 billion in 2024-25. India's merchandise trade with EU recorded strong growth between 2020-21 and 2024-25. Merchandise exports from India increased by 16.4% (on Compound Annual Growth Rate basis) from USD 41.36 billion in 2020-21 to USD 75.85 billion in 2024-25. India's merchandise imports from EU grew by 11.2% (on Compound Annual Growth Rate basis) from USD 39.72 billion in 2020-21 to USD 60.68 billion in 2024-25.
Response: The European Union has committed to eliminating duties on about 70.4% of tariff lines immediately, covering nearly 90.7% of India's export value, while another 20.3% of products will see phased tariff elimination over time. Overall, the EU's tariff concessions cover almost 97% of tariff lines and more than 99% of trade value, making them highly ambitious which will deliver early and substantive gains.
Response: India has adopted a calibrated approach, offering immediate duty-free access on about 49.6% of tariff lines covering 30.6% of trade value, and 39.5% tariff lines with trade value of 63.1% placed under phased elimination over 5/7/10 years from entry into force of the Agreement. India's total offer covers around 92.1% of tariff lines and 97.5% of trade value, reflecting a balanced strategy to open markets while protecting sensitive sectors.
Response: The FTA is expected to have a significant positive impact on the Indian agricultural and processed food sector. Preferential Market Access for agricultural products like tea, coffee, spices, grapes, gherkins and cucumbers, dried onion, fresh vegetables and fruits as well as for processed food products will make them more competitive in the EU. This market access will strengthen farmers' realised incomes, reinforce rural livelihoods, and elevate the global competitiveness of Indian agricultural products.
India has safeguarded sensitive sectors, including beef and poultry, dairy products, fish and seafood, cereals (especially rice and wheat), fruits and vegetables, nuts, edible oils, tea, coffee, spices, tobacco etc. balancing export growth with domestic priorities.
Response: The EU has excluded items such as meat and meat offal, dairy products, Honey, rice, sugar, tobacco etc.
Response: Services sectors' contribution in both economies remain substantial. It contributes around 73% of Gross Value Added (GVA) in EU and 55% of Gross Value Added (GVA) in India.
Response: This agreement provides substantial coverage of sectors under specific commitments in services as mentioned below:
Response:
Response:
Response: Obligations have been agreed upon that can boost India's growing digital payments ecosystem by creating market access opportunities for Indian payment service providers and leveraging India's technological expertise in digital payment systems such as UPI. Provisions have also been agreed upon that can promote collaborative efforts in Fintech innovation. As far as EU is concerned, India has provided 100 percent FDI commitments in the insurance sector and 74 percent for banking services. India has also provided market access for bank branches to EU, that is, 15 branches over 4 years for EU banks.
Response: The Telecommunication Services Annexure establishes a comprehensive, transparent, and balanced framework for cooperation in telecommunication services. It embeds key disciplines on access and use of networks, interconnection, access to essential facilities, submarine cable systems, and competitive safeguards. Importantly, it preserves regulatory autonomy by recognizing each Party's right to define universal service obligations and to manage scarce resources such as spectrum and numbering, while ensuring these are administered in an open, objective, and non-discriminatory manner.
Response: Regarding recognition of professional qualifications, considering legal structure and competence of EU, both parties have agreed to engage and identify professional services for negotiating a mutual recognition or similar agreement. Further, commitments on the recognition of qualifications, experience, and certifications have been made so that, in case the EU enters into an agreement or establishes an arrangement on recognition with any third party, it will open negotiations with India to conclude, in a time-bound manner, a similar arrangement.
Response: Both India and EU have agreed for MFN obligations for a certain number of sectors. At the time of entry into force of this Agreement, the Most Favoured Nation provision will become active and will continue to remain active for five years. Under this provision, both countries will receive MFN on sectors and to the extent committed by each of them. The continuation of the MFN post 5 years will be subject to a review mechanism. The key parameters of this review are developments pertaining to entry and stay of Indian students in the EU, including their work rights; and the maintenance, conclusion and adoption of social security arrangements between India and EU member states.
Response: India has taken appropriate carve-outs for national security and also reserved policy space in sectors like legal services, thereby taking care of India-specific sensitivities.
Response: EU has offered significant commitments on digitally delivered services for Indian service suppliers in number of sectors especially IT/ITES, Business services, professional services such as architecture and engineering, Education Services, and Telecommunication services. These are expected to further promote Global Capability Centers in India (GCCs) and enhance exports of digitally delivered services from India.
Response: In EU Member States where regulations do not exist, AYUSH practitioners will be able to provide their services using the professional qualifications they gain in India. The FTA also provides future certainty and locks in the openness of EU for establishment of AYUSH wellness centres and clinics in the European Member States. The FTA also envisages greater exchange with EU to facilitate trade in Indian Traditional Medicine services.
Response: Rules of Origin (RoO) are criteria used to determine the country of origin of a product. The primary purpose is to ensure that only products with substantial processing or manufacturing are granted the origin status of that country. The rules are essential to ensure that 3rd country goods do not get tariff preferences in the trade deal unless there is substantial processing or manufacturing in the trading partner. Countries formulate these rules depending upon the value chain of processing or manufacture of the product.
Response: A product exported by India can get a tariff concession in EU and vice versa only if the ROOs are met for the particular product. Hence, the exporter has to ensure that the origin rules are met for the export product. Further, the exporter must be able to submit requisite documentation to prove the origin of the goods, in the exigency of a verification carried out by the importing country customs.
Response: There are two main types of RoOs:
This applies to goods entirely produced in one country (e.g., agricultural products, minerals). The WO criteria in the India-EU trade deal uses the term "WO", "All materials of Chapter [X] are WO", etc.
Response: A broad outline for the Product Specific Rules (PSRs) for various broad categories are given below:
Response: In order to ensure only meaningful manufacturing or value-adding activities qualify for preferential tariffs, there is a "Insufficient production or Minimal Operations and Processes" clause. It specifies processes that do not confer origin status, even if performed in a member country (such as packaging, labelling, minor assembly, or peeling).
Response: Yes, there is bilateral cumulation, which allows two partner countries to treat materials or processing from each other as "originating" when producing goods under the trade deal.
Response: The principle of absorption provides that once a non-originating material has acquired originating status by meeting the applicable product-specific rules, its non-originating inputs are no longer taken into account when that material is subsequently used in the manufacture of another product. This would facilitate exporters of products with a long value chain and reduce compliance costs.
Response: Yes, there are alternative PSRs within a specific quota for marine exporters to import shrimps and prawns and do the processing like peeling and deveining. In case of downstream products of aluminium there is an alternative PSR within a specific quota for SMEs to imports upstream products to manufacture articles of aluminium.
The PSRs have also been negotiated keeping in perspective the need for flexibility to source non originating inputs for Indian exporters in certain products of sectors like refined petroleum, pharmaceuticals, leather, footwear, copper products, electronics and aerospace.
Moreover, there are process rules for synthetic diamonds and blending rule for liquor keeping in view the value chain of processing in India. The process rule for textiles, apparel and made-up would also enable our exporters since they are in line with the existing EU GSP rules.
Response: Yes, the concept of self-declaration is through the "Statement on Origin" which is in a prescribed format. The Indian exporters using self-declaration would need to register and issue the self-certified Certificates of Origin (CoO) through DGFT's "Common Digital Platform for Issuance of Certificate of Origin".
In the case of India's exports to EU, the EU importer can also use the Importers Knowledge criteria for clearing preferential goods. This is based on the EU importers having adequate information about the Indian origin of the product.
Response: The India-EU trade deal has a comprehensive authentication and verification mechanism. Both Parties would have an authentication mechanism in place before the entry into force of the trade deal failing which the certificate of origin signed by a competent authority would be in place. The verification mechanism has timelines and detailed procedures spelt out which makes it robust. This would be a strong enforcement deterrent.
Response: Yes, in the event there is a surge in imports into India from the EU on account of tariff liberalisation commitments under the trade deal, so as to cause or threaten to cause serious injury to a domestic industry, the trade deal provides a bilateral safeguard mechanism.
Response: Pursuant to a prescribed procedure, India can enhance the rate of duty to MFN level on goods which have resulted in surge in imports from EU due to tariff reduction or elimination under the trade deal.
Response: The maximum duration of bilateral safeguard measure cannot exceed four years. The measure can be initially applied for a period of two years, which can be extended by an additional period of two years upon a review investigation. In any case measure cannot exceed period of four years.
Response: Yes, this mechanism is available for use only during the transition period, which has been agreed to be a period of 22 years from the entry in to force of the trade deal. This is longest transition period that EU has agreed in any of its FTAs signed so far.
Response: No, the Trade Remedies Chapter provides a reckoning period of 2 years (in case duration of measure applied is 2 years) and 3 years (in case duration of measure applied is 4 years) before a Party can take retaliatory action against the Party applying the measure.
Response: A bilateral safeguard measure cannot be reapplied to the import of the same good for a period of time equal to half of the duration of the previous bilateral safeguard measure.
Response: Technical Barriers to Trade (TBTs) are behind-the-border rules related to product standards, technical product specifications (technical regulations) and tests or certificates (conformity assessment). While these measures are intended for legitimate goals like consumer protection or environment, they may sometimes create market barriers by increasing compliance costs and introducing complex regulatory procedures.
Response: The TBT chapter applies to the preparation, adoption and application of all standards, technical regulations and conformity assessment procedures by central government bodies. It lays down the basic principles for India and the EU to follow and aims at ensuring predictability, transparency and institutional mechanisms to address compliance challenges.
Response: The TBT Chapter provides for transparency in development and implementation of rules and regulations related to technical regulations and conformity assessment. It also provides for a Working Group on Conformity Assessment to specifically address any potential trade barriers and compliance challenges arising from either Party's laws. Further, provision on Technical Discussions enables early discussions and resolutions between the Parties.
Response: Yes, the TBT Chapter is subject to trade deal dispute settlement.
Response: The India-EU trade deal lays down a unified framework for intellectual property protection and enforcement. Its objectives are to foster investment in innovation, strengthen creative and knowledge-based industries, combat piracy and counterfeiting, and facilitate the wider dissemination of information, knowledge, and technology.
The IP provisions of the trade deal reaffirm the WTO's Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). They encompass copyright, trademarks, geographical indications, Industrial designs, undisclosed information, plant variety protection and border measures and enforcement. It does not include specific section on patent but includes an article on technology transfer in the General provisions.
Response: There is no obligation on India under the Intellectual Property Chapter in India-EU trade deal that requires India to change or modify any of its intellectual property laws as the provisions in the chapter are consistent with India's existing intellectual property regime.
Response: The IP Chapter in EU-India trade deal does not restrict India's right to grant compulsory licensing for public health purposes. The obligations in this chapter are without prejudice to the flexibilities available under Article 44.2 of the TRIPS Agreement which allows member states to explicitly exclude the granting of injunctions for cases of government use and other uses permitted by the government without the authorisation of the right holder, such as compulsory licenses.
Response: The IP chapter does not include any reference to the UPOV Agreement. The protection of plant varieties under this chapter is aligned with the TRIPS framework, specifically Article 27(3)(b). This provision allows members to protect plant varieties through patents, an effective sui generis system, or a combination of both. The duration of protection for plant varieties has been harmonised with Indian legislation, ensuring consistency with India's existing legal standards.
Response: There is no obligation of implementation of the TRIPS-plus data exclusivity for information submitted during the process of obtaining marketing authorisation for pharmaceutical and plant products; the language retains Article 39.3 of the TRIPS Agreement, which provides the flexibility.
Response: The TSD Chapter aims to enhance the integration of sustainable development, specifically its environmental and social (labour) dimensions, within the trade relationship between India and the EU. It seeks to promote international trade in a way that contributes to economic development, social justice, and environmental protection, while taking a cooperative approach, strengthening dialogue and cooperation between the Parties.
Response: No. The chapter explicitly states that it is not the intention of the Parties to harmonise their labour or environment standards. Each Party retains the right to regulate and determine its own sustainable development policies, priorities, and levels of domestic protection.
Response: Under the Chapter, the Parties affirm their commitment to decent work for all and agree to respect, promote and realise the fundamental principles at work and the core labour standards, namely:
The trade deal also clarifies that labour standards should not be used for protectionist trade purposes.
Response: The Parties commit to implementing the UNFCCC and the Paris Agreement and agree to:
Response: The Parties aim to strengthen their trade relationship in a way that provides equal opportunities for men and women. In addition, the Parties affirm their international commitments on gender equality and also agree to strengthen their cooperation on trade related aspects of gender equality including:
Response: The Chapter includes dedicated provisions on conservation and sustainable management of forests, biological diversity and marine biological resources and aquaculture. In particular, the chapter embodies the parties' commitment to:
Response: Yes. The trade deal acknowledges the difference in levels of development and integrates the principle of "common but differentiated responsibilities". It emphasises cooperation through:
Response: The TSD chapter does not take an adversarial approach and is not subject to the usual Dispute Settlement Mechanism of the trade deal. Instead, it takes a cooperative approach and establishes a dedicated Committee on Trade and Sustainable Development (TSD Committee) to monitor and review the implementation of this chapter. Further, in case of any matter or disagreement on the application or interpretation of the Chapter's provisions, the Parties have recourse to three-tier government to government consultations with final recourse to Ministerial Consultations.
Response: The objective of Subsidies section under this chapter is to promote transparency in the use of subsidies and providing a platform for consultation to seek additional information.
Response: The binding commitments on subsidies under this chapter relate to transparency and consultations. There is a soft obligation to use the subsidies for the policy objectives for which they are granted and to provide additional information.
Response: No. Agricultural and fisheries sector is kept out of the scope of this chapter
Response: This chapter does not cover subsidies wherein the amount of the budgetary outlay over a period of three consecutive years is below 18 million Special Drawing Rights.
Response: No, this chapter is kept out of bilateral dispute settlement mechanism of this trade deal.
Response: The Transparency chapter promotes openness, predictability, and fairness in the administration of the trade deal. It requires both India and the EU to:
Response: No, the Transparency chapter explicitly excludes recourse to dispute settlement. Its provisions are intended to promote openness, predictability, and fairness in the administration of the trade deal.
Response: Yes. The trade deal establishes an overall contact point for each Party to facilitate communication on matters relating to the trade deal. In addition, specific contact points are designated under relevant chapters. Any changes to contact point details must be notified promptly to the other Party.
Response:The trade deal will enter into force on the first day of the second month following the date on which India and the EU exchange written notifications confirming completion of their respective internal legal procedures, or on any other date mutually agreed by the Parties.
Response: The India-EU trade deal is valid for indefinite duration. Either Party may terminate the trade deal by providing written notification, with termination taking effect after the period specified in the trade deal.
Response:Yes, the trade deal may be amended by written agreement between India and the EU. In addition, the Joint Committee is empowered to adopt decisions to amend specific parts of the Agreement, such as the Rules of Procedure and the Code of Conduct under the Dispute Settlement chapter, subject to completion of the Parties' respective internal procedures.
Response: The trade deal provides for a general review by the Joint Committee within five years of its entry into force and thereafter every five years, or at such other times as may be agreed by the Parties. The review assesses, inter alia:
Response: The trade deal will be published in English, Hindi, and the official languages of the European Union. All language versions will be equally authentic. In case of divergence of interpretation, English will prevail.
Response: The trade deal establishes a Joint Committee comprising representatives of both India and the EU. The Joint Committee functions in accordance with the Rules of Procedure set out in the FTA. These functions include
Response: Each Party is required to establish or designate a Domestic Consultative Mechanism comprising relevant non-governmental stakeholders. These mechanisms provide inputs on the implementation of the FTA and facilitate structured stakeholder engagement.
Response: No, the trade deal does not confer direct rights or impose obligations on private persons, nor does it allow the trade deal to be directly invoked in domestic courts. Rights and obligations under the trade deal exist only between the Parties.
Response: No, the trade deal explicitly preserves the rights and obligations of India and the EU or its Member States under existing tax conventions. In the event of any inconsistency between the trade deal and a tax treaty, the tax treaty will prevail to the extent of the inconsistency.
Response: The FTA preserves the regulatory autonomy of both India and the EU to suitable extent. The General Provisions and Exceptions include provisions that allow each Party to adopt or maintain measures necessary to protect public morals, public order, public health, security interests, and other legitimate policy objectives.
Response: No, the trade deal contains comprehensive security exceptions allowing India to take any action it considers necessary to protect its essential security interests, including those relating to defence, national emergencies, and obligations under the UN Charter.
Response: The trade deal contains explicit provisions on the protection of confidential information. A Party is not required to disclose information where disclosure would impede law enforcement, be contrary to public interest, violate domestic law, or prejudice legitimate commercial interests. Any confidential information shared under the trade deal must be used only for the purpose for which it is provided. Additional confidentiality requirements are set out in specific chapters also.
Response: In situations of serious balance-of-payments or external financial difficulties, a Party may adopt temporary and non-discriminatory restrictive measures in accordance with IMF rules and relevant WTO provisions. Such measures must be proportionate, transparent, and phased out as conditions improve.
Response: The trade deal reaffirms the Parties' rights and obligations under the WTO Agreement and incorporates relevant WTO provisions, including GATT and GATS exceptions. Nothing in the trade deal requires India to act inconsistently with its WTO commitments.
Response: Disputes relating to interpretation or application of the trade deal may be addressed through consultations in the Joint Committee or specialised committees. Where required, matters may be taken up under the Dispute Settlement mechanism of the trade deal, without prejudice to Parties' right to approach the Rapid Reaction Mechanism.
Response: The trade deal contains a dedicated provision on Future Accessions to the Union. Under this provision, the EU is required to:
Response: The RRM is a dedicated and expedited mechanism to address:
The RRM operates through a three-tier structure:
All stages are subject to defined timelines to ensure expeditious resolution of issues.
Response: The RRM is subject to a clearly defined scope, timelines, and escalation procedures. It is without prejudice to the Dispute Settlement chapter and is designed to complement, not replace, existing institutional mechanisms under the trade deal.
Response: The SFS chapter is a standalone cooperation chapter in the India-EU trade deal, the first of its kind in any Indian trade agreement. It was included because sustainability issues such as food safety, antimicrobial resistance, food loss, and sustainable production practices are increasingly shaping agri-trade and consumer trust.
For India, the chapter creates an institutional platform for structured cooperation with the EU on these themes, without imposing new regulatory obligations. It strengthens India's export credibility in high-value markets, provides early visibility on evolving sustainability debates, and supports domestic priorities such as public health, climate resilience, and resource efficiency. Most importantly, it elevates sustainability from a side reference to a core pillar of trade cooperation.
Response: No. The chapter explicitly preserves each Party's right to regulate. It contains no binding harmonisation commitments and no obligation to amend domestic legal or regulatory frameworks.
Response: No. The SFS chapter is a cooperation framework, not an enforcement or conditionality instrument. It does not impose new import requirements, regulatory procedures, or binding sustainability standards on India.
Disclaimer: Curated by HT Syndication.
