Nasscom Welcomes India–EU FTA, Calls It Major Boost For Tech Services Sector

New Delhi, Jan 28 (KNN) The National Association of Software and Service Companies (Nasscom) on Tuesday welcomed the India–European Union free trade agreement.

They called it a major positive for India’s technology services sector as it opens new markets in the 27-nation bloc and brings greater rules-based certainty amid geopolitical uncertainties, particularly in the US.

The industry body said the pact is expected to lower non-tariff barriers and ease cross-border service delivery.

With services forming the fastest-growing segment of both economies, Nasscom noted that the agreement would improve market access for Indian technology firms, supported by digital trade rules that balance business needs with privacy, security and public policy concerns.

Nasscom said the FTA would help diversify export markets for Indian IT companies, strengthening India’s role in global digital value chains and reducing exposure to global trade volatility.

The agreement is also expected to provide a framework for concluding Social Security Agreements with EU member states over the next five years and deepen cooperation in technology, innovation and digital sectors under the India–EU Trade and Technology Council.

According to Nasscom, the pact could spur greater EU investment in India’s IT ecosystem, including joint ventures and R&D in areas such as artificial intelligence, semiconductors, clean technology and startups, while supporting job creation, MSME growth and investor confidence in India’s services sector.

(KNN Bureau)