The EU-India trade agreement is expected to significantly boost bilateral trade, with long-term economic benefits projected to reach approximately 26 billion euros, although its full impact may take years to materialize.
The recently proposed EU-India trade agreement is poised to create substantial economic benefits due to the significant economic scale of both regions, which collectively account for nearly a quarter of the world's GDP and a third of global trade. Under the agreement, the EU will grant India preferential access to 97% of its tariff lines, which cover nearly the entirety of trade value, while India will reciprocate by lowering tariffs on over 97% of goods imported from the EU. This mutual reduction in trade barriers is anticipated to bolster bilateral trade by 41% to 65%, with an expected annual economic gain of around 26 billion euros, predominantly benefiting EU businesses.
