16th India–EU Summit: Key Outcomes, Agreements and Strategic Significance

Tariffs Liberalisation

• EU will eliminate tariffs on over 90% tariff lines (99.3% by value).
• India will eliminate tariffs on 86% tariff lines (96.6% overall liberalization).
• Remaining lines are partially liberalised to protect sensitive sectors.

Sectoral Gains

• EU gains: agri-food, chemicals, pharmaceuticals, machinery, medical devices, automobiles.
• India gains: fisheries, textiles, footwear, chemicals, and pharmaceuticals.

Rules of Origin

• Only goods substantially produced or processed in India/the EU get tariff benefits.
• The self-certification system simplifies compliance, especially for SMEs.
• Customs verification is done through administrative cooperation.

Sanitary & Phytosanitary (SPS) Measures

• EU’s strict food safety, animal and plant health rules remain unchanged.
• Clear timelines for approvals, audits, certifications and inspections.
• SPS disputes are covered under the FTA dispute settlement.

Trade Remedies

• Retains the right to use: Anti-dumping, Anti-subsidy and Safeguard measures
• Includes a bilateral safeguard mechanism against import surges.

 Intellectual Property Rights (IPR)

• Strong IP protection aligned with Indian and EU laws.
• It covers: Copyrights, Trademarks, Designs, Trade secrets and Plant varieties
• Enforceable with Indian and EU laws to promote investment.

Competition, Subsidies & Mergers

• Competition law applies to public and private enterprises.
• EU can seek information on Indian subsidies if trade distortions arise.

Trade and Sustainable Development (TSD)

• Environment & Climate: The TSD chapter integrates trade with environmental protection by supporting climate action, biodiversity conservation and transition to low-carbon economies.
• Workers’ Rights: The agreement upholds core International Labour Organization principles to ensure fair, safe and non-discriminatory working conditions.
• Gender Equality: Trade provisions support women’s economic empowerment by promoting inclusive participation and cooperation aligned with international gender equality standards.
• Enforcement: Sustainable development commitments are legally binding and enforced through structured consultations involving experts and political decision-makers.

India-EU Relations

• Institutional Architecture

  • India–EU Summit is the apex platform; 16 Summits held so far (first in 2000, Lisbon). 
  • India–EU Trade and Technology Council (TTC) (set up 2022) is the key mechanism on tech sovereignty, trade security and supply chains. 

• • The EU is India’s largest trading partner and a major source of investment and technology.
    • Bilateral trade: $136.53 billion in 2024-25 (exports worth $75.85 billion and imports worth $60.68 billion), making it the largest trading partner for goods..
    • Market share: The EU market accounts for about 17 per cent of India’s total exports.
    • EU FDI in India (April 2000 – Sept 2024): $117.4 billion (16.6% of total FDI).
    • Indian FDI in the EU: $40.04 billion (April 2000 – March 2024).
    • FTA negotiations (re-launched 2022) have gained urgency; both sides aimed to conclude by end-2025, with tough bargaining on autos, wine/spirits, dairy, and India’s textiles/pharma/steel exports. 
• Technology & Digital Cooperation

• • • India–EU S&T cooperation is guided by parity/symmetry, co-investment and shared IPR principles.
    • Developing trustworthy AI: Both European AI Office and India AI Mission agreed to deepen cooperation
• People-to-People Ties

• • • 20% of EU Blue Cards (2023-24) issued to Indian professionals.
    • 6,000+ Erasmus scholarships awarded to Indian students in 20 years.
    • 2,700+ Indian researchers funded under Marie Sklodowska-Curie Actions.
• Defence & Security

• • • Maritime security cooperation under ESIWA+ programme.
    • First joint naval exercise (2023) in the Gulf of Guinea.
    • Collaboration on global security, piracy, counterterrorism, and disaster relief.
• Space Cooperation

• • ISRO launched the EU’s PROBA-3 mission (Dec 2024).
  • ISRO-ESA cooperation in Chandrayaan-3 and Aditya-L1 missions.
  • Signed MoU for Gaganyaan mission cooperation.

Issue in India-EU relations

• CBAM (EU carbon tax): India sees it as extra tax on steel/cement, reducing export competitiveness.
• GDPR vs India data rules: EU wants free data flows; India prefers data localisation and sovereignty controls.
• IPR (TRIPS-plus): EU seeks stricter patent rules; India worries about higher medicine prices, weaker generics.
• Government procurement: EU wants access to Indian public tenders; India wants to protect domestic industry.
• Mode 4 visas: India wants easier EU work/business visas for professionals and service providers.
• EU services market access: EU firms seek more entry into banking, legal, auditing, and financial services