India`s recently concluded Free Trade Agreement (FTA) with the European Union is expected to deliver significant gains for several Indian sectors, including textiles, pharmaceuticals, chemicals, agriculture, leather, and marine products, as the EU remains one of India`s largest and most important trading partners. The India-EU FTA, finalised in January 2026 after long negotiations, eliminates tariffs on over 90 per cent of goods traded between the two sides.

According to a sectoral analysis by credit rating agency ICRA, the agreement grants India preferential zero-duty access on 97 per cent of EU tariff lines, covering nearly 99.5 per cent of the value of Indian exports, while India will cut or eliminate tariffs on 92 per cent of its tariff lines for EU imports.