India Emerges Strong Gainer in Landmark Trade Pact with European Union, Says U.S. Trade Official

The recently concluded Free Trade Agreement (FTA) between India and the European Union is likely to place India in a significantly advantageous position, according to early assessments from the United States administration. Senior U.S. trade officials have indicated that the agreement provides India with expanded access to European markets and may strengthen its long-term economic leverage amid shifting global trade dynamics.

Speaking in a televised interview in New York, U.S. Trade Representative Jamieson Greer described the India–EU FTA as a deal in which India appears to have secured substantial benefits. While acknowledging that a detailed review of the agreement was still underway, Greer remarked that India stands to gain wider entry into European markets, particularly at a time when global trade patterns are being reshaped by protectionist policies and regional realignments.

According to Greer, the agreement reflects the European Union’s continued commitment to globalised trade, even as the United States seeks to recalibrate its economic strategy with a stronger emphasis on domestic manufacturing. He noted that India’s cost-competitive workforce and growing production base could allow Indian exporters to take swift advantage of reduced trade barriers in Europe.

Market Access and Mobility Provisions

One of the notable aspects discussed by U.S. officials is the possibility of enhanced mobility provisions for Indian professionals. While specific details are yet to be formally confirmed, European leadership has publicly highlighted labour mobility as a component of the agreement. If implemented as outlined, this could open new pathways for skilled Indian workers across multiple European sectors, including technology, engineering, and services.

Greer suggested that these elements, taken together, could result in a period of strong economic activity for India. He also observed that the European Union, given its heavy reliance on international trade, is actively seeking alternative markets as access to the U.S. becomes more restricted under revised American trade policies.

Global Trade Realignments

U.S. officials view the India–EU agreement within the broader context of global trade adjustments. With Washington imposing higher tariffs and stricter conditions on market access, several economies are exploring new trade corridors to manage excess production and maintain growth. In this backdrop, India’s expanding consumer base and manufacturing capabilities make it an attractive partner for export-driven economies such as the EU.

Greer indicated that European producers, facing constraints in the U.S. market, are increasingly looking toward India as a destination for goods ranging from automobiles and industrial chemicals to premium consumer products.

Tariffs and Energy Concerns

Addressing questions related to tariffs and energy trade, the U.S. trade representative confirmed that existing duties imposed on India remain in place. These include reciprocal tariffs as well as additional levies linked to India’s continued purchase of Russian crude oil.

While acknowledging that India has taken steps to reduce its dependence on discounted Russian energy supplies, Greer stated that progress is ongoing. He noted that U.S. authorities are maintaining close engagement with Indian counterparts and monitoring developments, particularly following the introduction of tighter sanctions by the U.S. Treasury in recent weeks.

Scale and Strategic Scope of the Agreement

The India–EU FTA is being described by policymakers as one of the most expansive trade agreements in recent times. Once fully implemented, it is expected to cover nearly one-quarter of global economic output and create a combined market serving close to two billion people.

The agreement significantly lowers trade barriers, with officials indicating that tariffs will be eliminated on almost all Indian exports to the European Union. In return, India is set to reduce duties on the majority of European goods entering its market. This reciprocal liberalisation is expected to boost trade volumes across a wide range of sectors.

Indian industries such as textiles, apparel, leather products, footwear, handicrafts, and marine exports are projected to benefit from improved competitiveness in European markets. European exporters, meanwhile, are expected to gain greater access in segments including automobiles, wines, chemicals, pharmaceuticals, and high-end manufactured goods.

Beyond Trade: Strategic Cooperation

In addition to the trade pact, India and the European Union have concluded separate agreements focusing on security, defence cooperation, and talent mobility. These initiatives are part of a broader strategic roadmap aimed at strengthening collaboration over the next five years, particularly in areas linked to technology, supply chain resilience, and rules-based international order.

The agreements were finalised during high-level talks between Indian leadership and senior EU representatives, reflecting a shared intent to deepen engagement at a time of evolving geopolitical and economic challenges.

As governments and businesses begin to assess the full implications of the India–EU FTA, early international reactions suggest that India is well positioned to capitalise on the opportunities created by the deal. Analysts note that its long-term impact will depend on effective implementation, regulatory alignment, and the ability of domestic industries to scale up production and innovation.