The Confederation of Indian Industry (CII) on Tuesday welcomed the announcement of the India–European Union Free Trade Agreement (FTA), describing it as a landmark step that has strengthened India’s global trade position. In a statement, CII Director General Chandrajit Banerjee said the agreement represents a strategic breakthrough that deepens economic ties between two major democracies accounting for nearly 25% of global GDP. Banerjee said the unprecedented preferential market access for over 99% of Indian exports to the EU would decisively boost competitiveness in one of the world’s most high-value markets.
CII Flags Sector-Wide Growth Boost
According to CII, key beneficiary sectors include textiles and apparel, leather and footwear, gems and jewellery, marine products, engineering goods, automobiles, agriculture and processed foods, as well as IT, IT-enabled services and professional services. The FTA is also expected to deliver tangible gains for labour-intensive industries and MSMEs, while enabling a future-ready mobility framework for Indian talent. Banerjee said the agreement aligns closely with India’s vision of Viksit Bharat @2047 and lays the foundation for inclusive, globally competitive growth. He noted that the agreement would anchor Indian manufacturers and service providers deeper into global value chains while accelerating investment, technology inflows and industrial scale-up.
Summit Signals Strategic Economic Reset
The announcement follows momentum generated at the 16th India-EU Summit, which marked a diplomatic milestone with European Council President António Costa and European Commission President Ursula von der Leyen attending India’s Republic Day celebrations as chief guests. The summit underscored growing strategic alignment between India and the EU and unlocked cooperation across trade, technology, security, climate action and education. Leaders from both sides hailed the FTA as a game-changer that will strengthen supply chains, boost bilateral trade and accelerate private investment. The agreement is expected to create new opportunities for nearly 20 million people and generate millions of jobs, offering both economies a competitive edge amid global economic uncertainties.
