Chief Economic Adviser V Anantha Nageswaran said the European FTA would help exporters who took a beating due to the US’s 50 percent tariffs. He said exporters have now found a good market in European countries.

Speaking in India today after the release of the Economic Survey 2025-26, the CEA said, “We will all be happy if a solution is found to the high tariffs faced by Indians,” further acknowledging that it is beyond its prerogative to set a deadline. “In the past, I have expressed the hope that it would happen within a certain time frame, echoing the sentiments of the Trade Minister, but those deadlines have passed.”

He said the agreement with the EU will create more jobs in the country. “Look for example in leather, footwear, textiles, exports… in all these labour-intensive sectors we now have much lower access to European markets. Of course, the deal has to be ratified by the European Parliament and that may take 6-12 months to take effect. But I think the opportunities for Indian exporters, especially in labour-intensive sectors, are now in good tariffs hit by the Union European countries.”

Once the India-EU FTA is implemented, duties on 90% of Indian exports will be eliminated immediately, rising to 93% within seven years. In addition, 6 percent of exports will benefit from tariff reductions or quota-based access.

This broad liberalization is expected to boost India’s manufacturing and labor sectors, as well as export growth, job creation and greater participation of micro, small and medium enterprises in global value chains.

The free trade agreement also opens India’s access to 144 EU services sub-sectors, including information technology, professional and technical services. It includes enhanced mobility provisions and allows unrestricted movement of students between India and the EU.

Meanwhile, Prime Minister Narendra Modi, in his speech before the budget session of Parliament, said that manufacturers should seize this opportunity and put their best foot forward.

Modi said the EU FTA is ambitious for India and new markets have been opened up for manufacturers. “To offer quality products to all 27 EU member nations… To offer the best of the best quality products on the market,” he said.