The European Union and India have reached a major free trade agreement after nearly two decades of negotiations. Once ratified, it will create one of the world’s largest free trade areas, covering a combined market of around two billion people.
For companies moving goods between Europe and South Asia, the agreement signals lower tariffs over time, increased trade volumes, and more complex planning requirements. While full implementation is expected in 2027, businesses should begin preparing now.
Agreement Overview
The EU–India Free Trade Agreement aims to reduce trade barriers and improve market access across goods, services, and investment. Key provisions include:
- Tariff reductions on most goods: Duties will be eliminated or significantly reduced on over 90 percent of traded goods by value, with phased timelines for sensitive sectors.
- Phased treatment for select industries: Automobiles, spirits, and certain agricultural products will transition gradually through quotas or staged reductions.
- Customs and trade facilitation: Measures to simplify procedures, improve transparency, and reduce administrative delays at borders.
- Services and investment access: Expanded access and protections that may influence long-term sourcing and production decisions.
Implications for Importers and Exporters
- Lower landed costs over time: Reduced duties may improve pricing flexibility, especially for high-volume or duty-sensitive goods.
- Higher cargo volumes: Trade growth is expected across textiles, engineering goods, electronics, chemicals, and consumer products, increasing pressure on transport capacity.
- More complex planning: Phased tariff schedules and eligibility requirements will require closer coordination to capture savings without service disruption.
- Greater compliance exposure: Accurate classification, rules of origin, and documentation will be critical to avoid delays or loss of preferential treatment.
Industry Sector Considerations
- Apparel, textiles, and consumer goods: Likely growth in India–EU trade will increase demand for reliable schedules, consolidation, and distribution support.
- Automotive and industrial goods: Gradual tariff changes will influence routing, inventory planning, and production timelines.
- Specialty and time-sensitive cargo: Regulated and high-value shipments will require tighter coordination across modes and border processes.
How EFL Global Supports Customers Through the EU–India Trade Shift
Trade agreements create opportunities, but they also introduce new layers of operational and compliance complexity. EFL Global works closely with customers to translate policy changes into practical, reliable supply chain execution.
- Established presence in both markets: As one of the largest logistics service providers in India, combined with a broad and established network across the EU, EFL is well positioned to support increased trade volumes and evolving routing strategies resulting from the EU–India agreement.
- Customs expertise on the ground in India: EFL India’s experienced customs teams support customers in understanding how the agreement impacts duties, documentation, and clearance requirements. This includes advisory support, end-to-end customs services, and round-the-clock clearance across multiple product categories.
- Integrated EU–India freight network: Existing air and ocean freight connectivity into major European gateways, paired with strong local operations in India and across the EU, enables consistent execution, flexible routing, and coordinated handoffs across borders.
- Industry-specific experience with global brands: EFL supports established multinational and global brands across fashion, automotive, technology, and pharmaceutical sectors. This experience brings a clear understanding of complex, high-volume supply chains, strict compliance standards, and the need for consistency across multiple origins and destinations as trade activity increases.
As EU–India trade accelerates, success will depend on more than reduced tariffs. It will require informed planning, disciplined execution, and a logistics partner with on-the-ground expertise in both regions. EFL supports customers at each step, helping ensure trade opportunities translate into measurable operational and commercial results.
Contact Us
EFL Global – Spain: esp-info@efl.global
