India-EU FTA To Boost Labour-Intensive Exports, Deepen Tech and Manufacturing Linkages: Economic Survey

New Delhi, Jan 29 (KNN) The free trade agreement (FTA) with the 27-member European Union (EU) would expand market access for India’s labour-intensive sectors and deepen integration with Europe’s technological and manufacturing capabilities, as per Economic Survey tabled in Parliament on Thursday.

"The FTA with Europe can support the continent’s efforts to revitalise parts of its manufacturing base and, at the same time, strengthen India’s manufacturing competitiveness, export resilience and strategic capacity," said the key document authored by Chief Economic advisor (CEA) V. Anantha Nageswaran.

In order to continue growth momentum in merchandise exports, India is actively pursuing a diversified trade strategy. This includes the recently concluded India-UK Comprehensive Economic and Trade Agreement (CETA) and the India-Oman Comprehensive Economic and Partnership Agreement (CEPA). It is also in talks with the US, Chile and Peru for a free trade agreement.

The negotiations of an FTA with New Zealand were concluded in December 2025. The India-Oman CEPA, signed on 18 December 2025, provides the country with market access for goods and services in the Middle East and Africa.

"An expanding network of FTAs supports India's trade strategy by offering reliable market access amid global uncertainty. These agreements enable export-focused firms to boost production and become more integrated into global value chain," said the Survey.

As per the Survey, FTAs improve export competitiveness by exposing local firms to international competition. It also encourages them to prioritise productivity and reliability over reliance on access-based benefits.

"To enable the exporters to leverage the benefits of FTAs and preferential trade agreements, the tariff explorer service on the Trade Connect ePlatform provides information on tariff concessions available to eligible exports from the country," highlighted the Survey.

(KNN Bureau)