What is in the EU–India trade agreement
The agreement has more than twenty chapters. These are the ones that matter most for companies trading between Europe and India, based on the European Commission's published summaries.
Trade in goods
India will eliminate tariffs on 86% of its tariff lines, covering 93% of EU exports by value. Including partial reductions and quotas, tariffs fall on 96.6% of EU goods exports. The EU will eliminate tariffs on more than 90% of its lines, 91% by value, with overall liberalisation reaching 99.3%.
Indian tariff cuts for EU exports
| Product | EU exports to India, 2024 | Indian tariff today | Under the agreement |
|---|---|---|---|
| Machinery and electrical equipment | €16.3 billion | up to 44% | 0% for almost all products, mostly over 5 to 7 years |
| Aircraft and spacecraft | €6.4 billion | up to 11% | 0% for almost all products, mostly over 5 years |
| Optical, medical and surgical equipment | €3.4 billion | up to 27.5% | 0% for 90% of products |
| Chemicals | €3.2 billion | up to 22% | 0% for almost all products, mostly from entry into force |
| Plastics | €2.2 billion | up to 16.5% | 0% for almost all products, mostly over 7 years |
| Iron and steel | €1.5 billion | up to 22% | 0% for almost all products |
| Motor vehicles | €1.6 billion | 110% | 10% within a quota of 250,000 vehicles |
| Pharmaceuticals | €1.1 billion | 11% | 0% for almost all products, mostly over 5 to 7 years |
Food and drink
- Wine: from up to 150% to between 20% and 30%
- Spirits: down to 40%
- Beer: down to 50%
- Olive oil: from 40% to 0%
- Processed food such as bread and confectionery: from up to 30% to 0%
Sensitive products
The EU keeps its tariffs on beef, chicken, rice, sugar, soft wheat, milk powders, honey, bananas, garlic and ethanol. Limited quotas apply to products such as table grapes, cucumbers, sweetcorn and sheep and goat meat. A bilateral safeguard allows temporary measures if a surge of imports seriously harms domestic producers.
Rules of origin and customs
Preferential tariffs apply only to goods that are substantially made in the EU or India. Exporters certify origin themselves through a statement on origin, uploaded to a portal that the importing country's customs can check. Customs provisions add advance rulings, simplified procedures and faster release of goods.
Technical rules and food safety
New technical regulations must be open to public consultation for 60 days, with six months between publication and entry into force. A working group on conformity assessment will also cover India's Quality Control Orders. EU food safety rules continue to apply to every import from India, without exception.
Services, digital trade and intellectual property
India binds its current level of services openness, beyond what it has offered any other partner, including the UK and Australia. See services and professionals for details.
The digital trade chapter protects software source code from forced disclosure and sets rules on online consumer protection. The intellectual property chapter provides strong protection and enforcement for copyright, trademarks, designs, trade secrets and plant varieties.
Small businesses
Both sides will publish market-access information on a single public website and set up SME contact points, so smaller companies can find the rules that apply to their products.
Sustainable development
Both sides commit to the Paris Agreement and to core labour standards, including freedom of association and the elimination of forced and child labour. Neither side may weaken its environmental or labour laws to attract trade or investment. These commitments are enforceable through a dedicated consultation mechanism, with a role for civil society.
Institutions and disputes
A Joint Committee oversees the agreement, with a rapid reaction mechanism to escalate trade concerns. Disputes go to independent panels whose rulings are binding. The agreement will be reviewed after five years.
Read next
- The EU–India trade agreementConcluded in January 2026. Tariffs cut on 96.6% of EU exports to India. What it means for your business.
- The trade deal, for European exportersIndian tariffs on cars, wine and machinery are coming down.
- EU product rulesTariffs set your price. These rules decide whether you can sell at all.