Mumbai, January 23 (IANS). The proposed Free Trade Agreement (FTA) with the European Union (EU) will open up additional export opportunities worth $10-11 billion for Indian exporters. This information was given in the report released on Friday.
The report released by Rubix Data Sciences said that India can meet this additional export without increasing capacity only by redirecting exports affected by US tariffs.
The share of top 15 product categories in exports from India to America is about 52 percent, whose value is about 45 billion dollars.
Of these, 12 categories account for exports worth about $21 billion, which currently have limited presence in the EU’s import basket.
The report said that even if 50 percent of these exports are gradually diverted to the EU through tariff reduction and better market access, this change could significantly change the India-EU trade dynamics.
India-EU bilateral trade has remained flat at $136.5 billion over the last three years (FY23 to FY25). The EU was India’s largest bilateral partner in FY25, overtaking the US.
India’s share of EU imports is only 2.9 per cent and its exports are 1.9 per cent, highlighting the gap between strategic intentions and actual trade outcomes.
“India’s trade flows to the EU are also highly concentrated, with more than 70 per cent of India’s exports to the EU going to just five member states,” the report said.
The report further said that the growth rate of EU, a group of countries with an economy of $ 21.1 trillion, is at 1.4 percent. At the same time, recession is being seen in its big economies Germany, France and Italy.
Apart from trade, EU is a major foreign investor in India. From April 2000 to December 2024, the EU has made a total of $119.2 billion in foreign direct investment in India, which is 16.5 percent of the country’s total FDI inflows.
–IANS
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