India-EU FTA Implementation Is The Real Challenge Now: Darpan Jain

New Delhi, May 21 (KNN) Successful conclusion of the India-European Union Free Trade Agreement (FTA) marks a major milestone in economic diplomacy  but the real challenge now lies in implementation, said Darpan Jain, Additional Secretary, Department of Commerce and Industry.

“We have climbed the mountain of negotiations. The bigger climb begins now, making it work on the ground for every exporter, every investor and every job creator across India and Europe,” Jain said 

He remarked this while addressing the Conference on "Next-Gen Trade Pacts: Leveraging India’s Partnership with Europe under FTAs" organised by Federation of Indian Chambers of Commerce and Industry (FICCI) in association with the Centre for Trade and Investment Law.

The India-EU FTA, announced in January 2026, is expected to provide preferential tariff access to 99.5 percent of Indian exports.

Labour-Intensive Sectors Expected To Gain From Tariff Elimination 

According to Jain, nearly USD 33 billion worth of labour-intensive Indian exports, including apparel, textiles, leather, footwear, gems, and jewellery, currently facing EU duties ranging from 10 to 14 percent and as high as 26 percent in some segments, will benefit from complete tariff elimination.

He noted that India and the European Union together account for nearly one-third of global trade in goods and services, making the agreement one of the most commercially significant trade pacts for India.

Highlighting the export potential, Jain said the EU imports around USD 263 billion worth of textiles annually, while India’s share currently stands at only USD 7.2 billion.

Similarly, India exports USD 2.7 billion worth of gems and jewellery to Europe compared to the EU’s total imports of USD 80 billion in the segment.

He said preferential access under the FTA could help India significantly expand its market share across European consumer markets.

Services, Mobility Provisions To Strengthen India-EU Ties 

On the services front, Jain said India’s services exports have reached USD 421 billion in the current financial year, nearly matching merchandise exports of USD 441 billion.

The agreement reportedly covers 144 out of 155 EU services sub-sectors and includes dedicated mobility provisions for IT professionals, contractual service suppliers, and intra-corporate transferees.

The pact also contains a first-of-its-kind annexure facilitating Ayurveda and traditional medicine practitioners within EU member states.

James Nedumpara, Head, Centre for Trade and Investment Law, said the agreement assumes greater significance at a time when many economies are becoming increasingly sceptical about international trade commitments.

He described the India-EU agreement as a reaffirmation of rules-based global trade and noted that it goes beyond market access to redefine how trade partnerships are structured.

FICCI Secretary General, Anant Swarup said the European Union accounts for nearly 12 per cent of India’s merchandise trade and stressed the importance of converting the agreement into practical gains for exporters, MSMEs, and service providers.

(KNN Bureau)