EU, India new trade deal to double EU exports by 2032

EUROPE/INDIA – The European Union and India have reached a major free trade agreement after nearly two decades of talks, with both sides expecting gains in trade, investment, and market access.

The agreement aims to double EU goods exports to India by 2032 by cutting or removing tariffs on 96.6 per cent of exports.

EU and India trade in goods and services now exceeds €180bn (US$197bn) a year, according to the European Commission. Overall tariff cuts could save about €4bn (US$6.87 billion) in duties each year.

European Commission president Ursula von der Leyen called the deal historic. “The EU and India make history today, deepening the partnership between the world’s biggest democracies. We have created a free trade zone of 2bn people, with both sides set to gain economically,” she said.

Indian Prime Minister Narendra Modi also welcomed the agreement. “This is India’s biggest free trade agreement. It will make access to European markets easier for India’s farmers and small business,” he said.

Careful approach to food trade

Both sides chose to protect some farm sectors. The EU excluded products such as beef, chicken, rice, and sugar from tariff cuts, while India safeguarded dairy, cereals, poultry, soy meal, and some fruit and vegetables. At the same time, the agreement reduces tariffs on many agri-food exports that currently average more than 36 per cent.

Industry leaders welcomed the deal. Philippe Binard of Freshel Europe said the agreement brought relief after recent trade uncertainty. “Despite some exclusions on both sides, the agreement for EU export will lead to some interesting duty reductions,” he said.

Azhar Tambuwala of Sahyadri Farms said tariff cuts came at the right time. “The duty benefits are long-awaited as other supply origins have been on zero duty and making India less competitive,” he said.

Fresh produce gains and wider trade shifts

India exported about 134,000 tonnes of table grapes to the EU in 2024, while mangoes and pomegranates reached 19,607 tonnes and 4,101 tonnes. On the EU side, tariffs on pears and kiwifruit will fall from 33 per cent to 10 per cent within quotas, while apple tariffs could drop from 50 per cent to 20 per cent within seasonal limits.

The deal also comes as EU fresh produce exports to the United States face tariffs of 20 to 25 per cent, pushing producers to seek other markets in Asia, Africa, and the Middle East. Industry players see India as a key outlet for redirected volumes.

Beyond tariffs, the agreement supports faster customs processes, stronger intellectual property protection, and wider access to India’s services market. Negotiators will now review the legal text before final approval, with a formal signing expected later this year, though ratification may take time.

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