India-EU Trade Deal: Will Indian Industries Suffer After the Free Trade Agreement?
India and the European Union have delivered the “mother of all deals.” The India–EU trade deal talks started in 2024 and have now finally concluded with the signing of the agreement. Together, India and the EU account for roughly 25% of global GDP, and the agreement is expected to have far-reaching implications for exports, employment, supply chains, and industrial competitiveness. The European Union is India’s second-largest export destination for textiles and apparel, after the USA. The FTA responds to contemporary global challenges while enabling deeper market integration between the world’s 4th- and 2nd-largest economies.
Though the deal opens access to the USD 263.5 billion textile and apparel import market, there are several other areas where India might not gain an advantage from the Free Trade Agreement.
The India–EU Free Trade Deal opens doors for the European luxury car segment. Current tariffs on imported cars in India are as high as 70–110%, making European brands expensive. Under the FTA, these tariffs will be reduced in phases to as low as 10% over time. This makes it difficult for Indian car manufacturers to compete in the domestic market, especially in the luxury car segment.
The CBAM is an EU policy tool designed to impose a carbon price on imports of certain carbon-intensive goods such as cement, iron and steel, aluminum, and fertilizers. India has not secured any exemption or rollback from the European Union’s CBAM even as the two sides concluded negotiations on a free trade agreement, leaving a major trade cost for carbon-intensive sectors unresolved.
Europe is no longer a demand-centric region, as the young population in Europe is declining, leaving the older generation dominating the demographic structure.
Though the India–European Union free trade agreement will be applicable next year, in 2027, there are many questions about both the Indian and European markets that will be answered by the time of implementation.
#indiaeu #pmmodi #indiaeufta #indiaeutradedeal #ursulavonderleyen #europe #automobile #breakingnews #republictv
Watch More ➡️ Videos On: https://www.youtube.com/@RepublicDefence
Visit Now ➡️ Full Story On: https://www.republicworld.com
——————————————————————————————————-
Republic TV is India’s no.1 English news channel since its launch. Watch Republic YouTube Channel to get all the breaking news updates, LIVE news, videos and perspectives from Republic Media Network’s battery of reporters, anchors, and producers spread across India and the world. Watch Republic for Arnab Goswami’s most watched debates. Republic TV makes news accessible at all times and across devices. At Republic, we keep you updated with up-to-the-minute news on the world of politics, sports, entertainment, business, defense, science, health, lifestyle, gadgets, and much more.
We believe in Breaking the story and Breaking the Silence. But most importantly, for us ‘You Are Republic, We Are Your Voice.’
Also, Watch ►
Republic TV Live News Updates ►http://bit.ly/RepublicTVLiveNews
The Debate With Arnab Goswami ► http://bit.ly/TheDebateWithArnabGoswami
Exclusive Sunday Debate With Arnab Goswami ► http://bit.ly/SundayDebate
The Grand Strategy With Maj Gen G.D Bakshi (Retd) ► https://bit.ly/3EPZ6xF
R.Explained ► https://bit.ly/3sOLT5K
R.Uninterrupted ► https://bit.ly/34isZdh
🌟 Don’t just watch the news—LIVE IT with Republic!
From the big headlines to behind-the-scenes moments, follow us everywhere:
🌐 Website: www.republicworld.com
👍 Facebook: https://www.facebook.com/RepublicWorld
🐦 Twitter: https://twitter.com/republic
📸 Instagram: https://www.instagram.com/republicworld
📢 Telegram: https://t.me/RepublicLive
📱 WhatsApp Channels:
💬 Digital: https://whatsapp.com/channel/0029VaALjvmCRs1xIH3e003K
💬 World: https://whatsapp.com/channel/0029Va1whYb7dmeZr7v3ar0y
Disclaimer: Republic Media Network may provide content through third-party websites, operating systems, platforms, and portals (‘Third-Party Platforms’). Republic does not control and has no liability for Third-Party Platforms, including content hosted, advertisements, security, functionality, operation, or availability.
