India-EU FTA: The Complete Guide for Indian Exporters

India-EU FTA negotiations launched in 2007, stalled in 2013, and were relaunched with renewed political momentum in June 2022. As of 2026, most technical chapters are complete with remaining contentious areas — IP, government procurement, and sustainable development enforcement — under intensive diplomatic engagement.

What India-EU FTA will deliver: Tariff elimination on 90%+ of lines over 7-10 years. Day-1 eliminations expected for pharmaceuticals (currently 0-6.5%), engineering goods (0-7.5%), chemicals (0-6.5%), and phased elimination for textiles and garments (currently 12%). For services, India seeks Mode 4 commitments (simplified EU work permits for Indian IT professionals); the EU seeks Mode 3 liberalisation of financial and professional services in India.

Rules of origin will be critical. Indian manufacturers sourcing inputs from China must ensure 35-40% India value addition to qualify for FTA preferences. Integrated manufacturers with end-to-end India production are best positioned for Day-1 benefits.

Action items today: Map your HS code against EU MFN rates and calculate Day-1 FTA savings. Audit your supply chain for rules of origin compliance. Obtain EU certifications (CE, WHO-GMP, CEP, GOTS) now so you can ship immediately when the FTA enters force. Register with PHARMEXCIL, EEPC, or AEPC for FTA implementation alerts. Engage AJG to pre-qualify EU buyer relationships ahead of FTA conclusion.