India Targets Doubling Exports To EU Within Four Years After Free Trade Agreement

India aims to double its exports to the European Union within four years, capitalizing on the potential offered by the proposed India-EU Free Trade Agreement. The deal, currently pending legal approval in the EU, is expected to become effective by March 2027, according to government sources.

The focus will be on enabling exporters to fully capitalize on the market access opportunities provided by the pact. To support this, the Center plans to hold high-level meetings with all EU member states and boost business-to-business interactions, aiding exporters in their endeavors.

India's current exports to the EU amount to $72.39 billion, constituting 16.40% of the nation's total exports. However, companies must bolster their production capacity and align with European standards to augment shipments to the bloc. India has secured a steel export quota of 2.8 million tonnes to the EU; exceeding this will incur a 50% tariff.

Indian exporters will also need to adhere to the European Union's Carbon Border Adjustment Mechanism (CBAM), which imposes carbon-related requirements on specific imports. To tackle these compliance challenges, India has pushed for expedited approval of six domestic verifier bodies that will assist exporters in meeting carbon reporting obligations under the EU framework.

The government is confident that the trade agreement can significantly broaden India's footprint in European markets, but exporters will need to enhance scale, quality standards, and regulatory compliance. The anticipated FTA will facilitate greater market access for Indian businesses and fortify trade relations between India and the European Union once implemented.