India-EU FTA May Redirect USD 10–11 Bn Exports From US: Report

New Delhi, Jul 15 (KNN) The proposed India-European Union Free Trade Agreement (FTA) could enable India to redirect exports worth an estimated USD 10–11 billion from the United States to the European market, according to a report by Rubix Data Science. 

The report said, “Export diversification efforts could also help India redirect a portion of exports currently bound for the United States, with an estimated USD10-11billion potential shift into the EU market,” ANI reported.

The shift is expected to reduce dependence on a single export destination and strengthen India’s trade resilience amid evolving global dynamics.

Boost to Competitiveness and Market Access

The report noted that the FTA could enhance India’s global competitiveness by easing tariffs and addressing regulatory and technical barriers. 

Key sectors likely to benefit include textiles, leather, engineering goods and chemicals. Preferential access to the European market would also help India regain tariff advantages lost after the withdrawal of the Generalised Scheme of Preferences (GSP).

Opportunities in Services and Investment

Beyond goods trade, the agreement is expected to support India’s services sector by ensuring more predictable market access in areas such as information technology, professional services, education, financial services and construction. 

The EU, which accounts for about 16.5 per cent of India’s total FDI equity inflows, is also expected to increase investments across sectors including renewable energy, manufacturing and chemicals.

Strong Bilateral Trade Base

India and the European Union already share significant trade ties. Bilateral goods trade stood at USD 136.54 billion in 2024–25, with India exporting goods worth USD 75.85 billion and importing USD 60.68 billion. Trade in services between the two sides reached USD 83.10 billion during the same period.

(KNN Bureau)