India trade with the European Union has increased regularly, reaching $ 135 billion in goods in 2023-24. The EU is the largest trading partner in India, with Indian exports worth around $ 76 billion and EU imports to almost $ 59 billion.
The services trade added an additional $ 59 billion in 2023, led by information technology and commercial services. Investments are also important, European companies holding $ 117 billion in India and Indian companies investing around $ 40 billion in the EU.
To talk about an India-UE free trade agreement are underway, covering prices, investment rules and market access. Negotiations restarted in 2021 after being blocked for eight years. At the same time, India and the United Kingdom increase a separate trade agreement on a fast track. Despite progress, major differences remain.
India is concerned about the new EU carbon border tax, which from January 2026 will impose additional costs on exports of steel, aluminum and cement. Another challenge is the EU deforestation regulations, which will require proof that goods imported into Europe are not linked to deforested lands after December 2020.
Other problems under negotiation include the protection of investments, data transfer rules, professional mobility, access to the agricultural market and intellectual property. India seeks recognition as a secure country of data and temporary work permits easier for qualified professionals in the EU. The EU wants India to reduces restrictions on professional services and provides stronger protection of intellectual property.
In addition to these political discussions, the logistical capacity between India and Europe is developing. Fedex Added direct flights from Bengaluru and Delhi to Europe, based on existing Mumbai services. The new connections increase the loading space and reduce transit times for exporters. Fedex also provides an express network on roads and aerials covering 46 European countries, allowing India shipments to move quickly through the region.
Additional capacity should benefit sectors such as pharmaceuticals, electronics, automobiles and specialized chemicals. These industries are based on reliable and fast transport to serve European customers. Indian exporters can also rely on government support schemes, including production incentives, rights and taxes on exported products and export promotion equipment.
The combination of improved logistics and current political negotiations is likely to shape the future export trajectory from India to the EU.
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