European Commission explains EU-India Free Trade Agreement with tariff cuts and expanded access for services including financial services

The European Commission published a questions and answers note on the EU-India Free Trade Agreement, outlining how the deal is expected to cut tariffs and administrative burdens and expand market access for EU goods and services, including enhanced entry to the Indian services market in areas such as financial services and maritime services. The Commission expects the agreement to double EU exports to India, with tariffs on over 90% of EU goods exports eliminated or reduced and duty savings of up to EUR 4 billion per year. On industrial goods, the note highlights major tariff reductions including a gradual cut on cars from 110% to 10% within a quota of 250,000 vehicles a year, and the near-elimination of high tariffs cited for sectors such as machinery, chemicals and pharmaceuticals. For agri-food, often prohibitive tariffs averaging over 36% are to be removed or reduced for selected products, while “sensitive” EU agricultural sectors such as beef, sugar and rice are excluded from liberalisation; a separate EU-India agreement on Geographical Indications remains under negotiation. The agreement also includes simplified customs procedures, rules of origin to prevent non-qualifying goods benefiting from preferences, provisions on digital trade and intellectual property, a dispute settlement mechanism with binding panel reports, and legally binding Trade and Sustainable Development commitments enforceable via a dedicated consultation mechanism. Before the agreement can take effect, the EU still needs to publish negotiated draft texts, complete legal revision and translations, and proceed through Council and European Parliament steps for signature and conclusion; entry into force also depends on India’s ratification.