Key Highlights
- tariffs since late August. STORY CONTINUES BELOW THIS ADHowever, a vote by EU lawmakers earlier this week to challenge the EU-South America pact in the bloc’s top court highlights how parliamentary hurdles could delay or complicate ratification. More from World Explained: ‘Big bazooka’ that EU could use to counter Trump’s tariff threats over Greenland India, EU on cusp of historic trade deal: What’s agreed, what are the sticking points?Investment protection and geographical indications (GIs) are being negotiated separately, narrowing the FTA’s focus to goods, services and trade rules. WHY IT MATTERS NOWThe pact would be India’s ninth trade agreement in four years, reflecting New Delhi’s push to secure market access as global trade turns more protectionist.
- For the EU, the deal supports supply-chain diversification and reduces reliance on China, while tapping India’s fast-growing $4.2 trillion economy. GAINS FOR INDIAThe EU is among India’s top trading partners, along with the United States and China, with total bilateral goods and services trade exceeding $190 billion in 2024/25.
- India exported about $76 billion in goods and $30 billion in services to the 27-nation bloc. Quick ReadsView AllUS: Indian woman, 3 relatives shot dead by husband in domestic dispute; children hid in closetTrump's oil tariff push falters as China boosts fuel imports from Russia; India and Turkey cut backAverage EU tariffs on Indian goods are relatively low at about 3.8%, but labour-intensive sectors such as textiles and garments face duties of around 10%, according to Global Trade Research Initiative, a Delhi-based think tank. The FTA would help restore competitiveness lost after the EU began withdrawing tariff concessions under Generalised System of Preferences (GSP) in 2023, on products including garments, pharmaceuticals and machinery, and offset the impact of higher U. S.
- tariffs. STORY CONTINUES BELOW THIS ADIndia is also seeking access for its professionals and export of IT services. GAINS FOR EUEU exports to India face much higher barriers, with a weighted-average tariff of about 9.3% on $60.7 billion of goods in 2024/25. Duties are particularly steep on automobiles, auto parts, chemicals and plastics.
- Tariff cuts would open opportunities in cars, machinery, aircraft and chemicals, while improving access to services, procurement and investment in one of the world’s fastest-growing large markets. KEY STICKING POINTSAgriculture and dairy are excluded.
