India – EU free trade agreement key details

India-European Union Free Trade Agreement (FTA) is set to bring major benefits for both sides. The EU says it could save up to $4 billion every year in duties on goods exported to India. This is because India will reduce or remove import taxes on 96.6% of EU products.

Big-ticket items like machinery, which earlier faced duties up to 44%, will now see those charges mostly gone. Chemicals (22% duty) and pharmaceutical products (11% duty) will also get major relief. This means European products will become cheaper in India, helping industries and consumers alike.

Food lovers can cheer too—tariffs on EU’s fruit juices and processed foods will be completely removed. Even aircraft and spacecraft from the EU will enjoy zero or near-zero tariffs, boosting aviation and space collaboration.

In a green move, the EU has also promised €500 million in support over the next two years. This fund will help India reduce greenhouse gas emissions and invest in clean energy and sustainable development.

This FTA marks a big step in strengthening India-EU ties, boosting trade, and supporting climate goals. It’s a win-win for both economies and a strong signal of global cooperation in today’s changing world.