India–European Union Trade Overview
The EU is the world's largest single market and India's most strategically important trade partner. The India-EU FTA will transform bilateral trade — eliminating duties on pharma, engineering, textile
Member States (27)
Germany
France
Italy
Spain
Netherlands
Belgium
Poland
Sweden
Austria
Denmark
Finland
Ireland
Portugal
Czech Republic
Hungary
Romania
Bulgaria
Croatia
Slovakia
Slovenia
Estonia
Latvia
Lithuania
Greece
Cyprus
Malta
Luxembourg
Top Verticals for This Bloc
Key Risks — India Trade with European Union
EU regulatory complexity — REACH, CE marking, MDR, GMP require substantial compliance investment
High — non-compliant goods refused at EU customs port
Mitigation: Pre-certify: CE marking, EU GMP, REACH compliance before first shipment
CBAM carbon cost — Indian steel, cement, aluminium exporters face carbon border tax
Medium/High — EUR 65–83/tonne CO₂ equivalent
Mitigation: Conduct EU-recognised GHG audit; target green steel/cement pathways before 2027 full enforcement
FAQ — India & European Union
Q: What duty do Indian exporters currently pay to sell into the EU?
Under current MFN rates: pharma 0–6.5%, textiles 10–12%, engineering 2.7–6.5%, ceramics 4.7%. Under India-EU FTA (expected 2026): most lines reach 0% on Day 1 or within 3–5 years.
Q: Which EU countries are the largest importers from India?
Germany (USD 28B), Netherlands (USD 8B), Belgium (USD 7B), Italy (USD 14B), France (USD 18B) are the top 5.
Q: Does CE marking apply to all products exported to the EU?
CE marking applies to product categories covered by EU harmonisation directives (e.g. medical devices, machinery, electronics, PPE, toys). Pharma requires EMA approval/EU GMP. Food requires EU food law compliance.
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