FICCI Urges Strategic Market Approach To Maximise India-EU FTA Gains For MSMEs

New Delhi, Oct 23 (KNN) FICCI on Thursday urged Indian companies to adopt a strategic approach to the European market to maximise gains from the proposed India-EU free trade agreement (FTA), noting that tariff concessions alone may not boost exports.

FICCI Secretary General Anant Swarup said the key challenge was to convert improved market access into sustained market penetration, particularly for micro, small and medium enterprises (MSMEs).

He stressed the need to identify products with significant tariff advantages, build relationships with European buyers, improve product quality and integrate into European supply chains, reported PTI.

Compliance, Certification Key To Export Growth
Swarup said MSMEs could expand their reach by supplying Indian and European companies in sectors such as textiles, leather, engineering components, chemicals and processed foods.

However, meeting EU requirements on product safety, technical standards, sustainability, traceability and carbon emissions would be crucial. Regulations such as the Carbon Border Adjustment Mechanism (CBAM) would require investments in cleaner technologies, certification and compliance systems.

FICCI identified three priority areas. Market intelligence, testing and certification infrastructure, and access to technology and finance. 

Product-specific guidance on tariffs, rules of origin and regulatory requirements, along with dedicated FTA helpdesks, sectoral advisory services and buyer-seller platforms, could help MSMEs navigate the agreement.

Swarup also called for expanding internationally accredited testing laboratories and certification facilities in major export clusters. Greater cooperation between Indian and European conformity assessment bodies could reduce duplication, costs and delays.

MSMEs Need Affordable Finance, Technology
Swarup said MSMEs need affordable finance, modern technology, digital traceability and support to meet environmental and sustainability standards. Shared facilities and targeted technology-upgradation programmes could help reduce investment costs.

He urged using the FTA’s regulatory cooperation framework to address technical barriers, improve transparency and facilitate recognition of testing and certification systems.

Beyond tariff benefits, the agreement could attract European investment, foster technology partnerships, integrate Indian firms into global value chains and diversify export markets.

“The real opportunity is not simply to export more to Europe, but to position India as a trusted manufacturing and services partner in European supply chains,” Swarup said.

(KNN Bureau)