India-EU trade grows steady, crosses $135 billion in goods in FY24
Issues under negotiation include investment protection, data transfer rules, professional mobility, agricultural market access, and intellectual property.;
India’s trade with the European Union has grown steadily, reaching $135 billion in goods during 2023-24. The EU is India’s largest trading partner, with Indian exports valued at around $76 billion and imports from the EU at nearly $59 billion.
Services trade added another $59 billion in 2023, led by information technology and business services. Investments are also significant, with European companies holding $117 billion in India and Indian firms investing about $40 billion in the EU.
Talks on an India-EU free trade agreement are underway, covering tariffs, investment rules, and market access. The negotiations restarted in 2021 after being stalled for eight years. At the same time, India and the United Kingdom are advancing a separate trade agreement on a fast track. Despite progress, major differences remain.
India is concerned about the EU’s new carbon border tax, which from January 2026 will impose additional costs on steel, aluminium, and cement exports. Another challenge is the EU’s deforestation regulation, which will require proof that goods imported into Europe are not linked to deforested land after December 2020.
Other issues under negotiation include investment protection, data transfer rules, professional mobility, agricultural market access, and intellectual property. India seeks recognition as a data-secure country and easier temporary work permits for skilled professionals in the EU. The EU wants India to reduce restrictions on professional services and provide stronger protection for intellectual property.
Alongside these policy discussions, logistics capacity between India and Europe is expanding. FedEx has added direct flights from Bengaluru and Delhi to Europe, building on existing services from Mumbai. The new connections increase cargo space and reduce transit times for exporters. FedEx also provides an express road and air network covering 46 European countries, allowing shipments from India to move quickly across the region.
The additional capacity is expected to benefit sectors such as pharmaceuticals, electronics, automotive, and speciality chemicals. These industries rely on reliable and fast transport to serve European customers. Indian exporters can also draw on government support schemes, including Production Linked Incentives, Remission of Duties and Taxes on Exported Products, and Export Promotion Capital Goods.
The combination of improved logistics and ongoing policy negotiations is likely to shape the future trajectory of India’s exports to the EU.