A strategic pivot awaits Indian businesses as the EU FTA promises $10-11 billion in new export avenues. Rubix Data Sciences’ report, released Friday, paints an optimistic picture: India can achieve this without expanding capacities by rerouting US-impacted exports.
US exports from India, dominated by 15 key categories totaling $45 billion (52% share), offer prime redirection candidates. Twelve categories worth $21 billion barely scratch the EU import surface. Gradually shifting 50% via lower tariffs and enhanced access could transform bilateral trade.
Stagnant at $136.5 billion over FY23-FY25, India-EU trade saw the EU claim top partner status in FY25, eclipsing the US. Yet, India’s footprint remains small: 2.9% of EU imports and 1.9% of exports. Export concentration is stark—over 70% to five EU nations.
Economic headwinds plague the EU’s $21.1 trillion bloc, with 1.4% growth and recessions in Germany, France, and Italy. On the investment front, EU firms have committed $119.2 billion to India since 2000, accounting for 16.5% of FDI.
As global tariffs rise, this FTA emerges as a lifeline, enabling India to diversify markets, mitigate risks, and forge deeper economic ties with Europe.