India–EU FTA Opens Unprecedented Market Access For Indian Exporters & MSMEs: FIEO President

New Delhi, Jan 28 (KNN) The Federation of Indian Export Organisations (FIEO) has praised Prime Minister Narendra Modi’s leadership and diplomacy following the conclusion of the India–European Union Free Trade Agreement (India–EU FTA). 

“The conclusion of the India–EU FTA marks a defining milestone in India’s global economic journey and stands as a testament to the government’s unwavering commitment to trade-led growth, economic reforms, and global integration,” said S C Ralhan, President, FIEO.

He added, “It is the outcome of persistent, result-oriented negotiations steered with strong political resolve by the government since the re-launch of talks in 2022, reflecting a shared vision to establish a balanced, modern, and rules-based economic partnership.”

Ralhan noted that with tariff cuts of up to 10 per cent on nearly USD 33 billion worth of Indian exports, key sectors—including textiles, apparel, leather, footwear, gems and jewellery, engineering goods, marine products, handicrafts, and automobiles—are set to benefit. This is expected to support higher exports, job creation, and broader participation in global trade.

He highlighted, “This agreement opens unprecedented market access for Indian exporters across goods and services, particularly empowering labour-intensive sectors, MSMEs, women entrepreneurs, artisans, and youth—core focus areas of the government’s inclusive growth agenda.”

The agreement covers trade in goods and services, rules of origin, customs facilitation, trade remedies, digital trade and MSMEs. 

It addresses non-tariff barriers through better regulatory cooperation, transparent standards and simpler customs processes. Limited, quota-based opening in automobiles will allow advanced EU models while supporting Make in India and Atmanirbhar Bharat.

Indian consumers will benefit from better access to advanced products and increased competition. Agriculture and processed food exports such as tea, coffee, spices, fruits and vegetables gain improved access, while sensitive sectors like dairy and cereals remain protected.

In services, the FTA covers 144 EU subsectors, including IT/ITeS, professional services, education, finance, tourism and construction. 

Mobility provisions improve opportunities for Indian professionals, including business visitors, intra-company transfers, contractual workers, independent professionals and work rights for dependents.

The agreement strengthens IP protection and promotes cooperation in areas such as AI, clean technology, semiconductors, sustainability and CBAM-related issues.

Ralhan emphasised, “The India–EU FTA, together with the government’s recent FTAs with the UK and EFTA, effectively opens the entire European market for Indian exporters. This landmark agreement aligns seamlessly with the vision of ‘Viksit Bharat 2047’ and positions India as a resilient, competitive, and forward-looking global trade leader.”

(KNN Bureau)