Trade with India is power for Europe

27.01.2026 11:36

Trade with India is power for Europe

India flag on the economic data background

The EPP Group welcomes today’s conclusion of the comprehensive EU-India trade agreement, a landmark achievement that strengthens ties between the European Union and the world’s largest democracy. The agreement will boost trade and investment, deepen cooperation on technology and resilient supply chains, and reinforce shared values at a critical moment for global stability.

"This agreement with India is a strategic necessity at a decisive moment. By concluding it, Europe anchors trade, security, and technology cooperation with the world’s largest democracy, strengthening our autonomy and long-term resilience. This is ultimately about geopolitical leverage at a time when Russia and other hostile actors are actively seeking to fracture the West,” says Mika Aaltola MEP, EPP Group spokesman on EU-India trade relations.

Angelika Niebler MEP, Chair of Parliament's Delegation for relations with India, adds: "This agreement sends a strong political signal, particularly in today’s challenging global environment. The EU is serious about cultivating new trading partners, and among the world’s relatively untapped markets, India stands out as one of the most promising. This free trade agreement opens access to 1.4 billion consumers. We rely on pro-European forces to recognise its importance and act accordingly. A vote like last week’s on the Mercosur agreement must not be repeated. Europe needs reliable trading partners - and India, as the world’s largest democracy and fourth-largest economy, is one of them."

The agreement could double EU exports to India by 2032. By cutting tariffs on over 96% of EU goods, including products such as wine, olive oil, chocolate, and pastries, it delivers real gains for European businesses, saving around €4 billion every year. Beyond trade, it is a geopolitical investment that strengthens Europe’s strategic autonomy, resilient supply chains, and partnership with the world’s largest democracy.

At a time of increasing global fragmentation, the EU-India trade agreement demonstrates that Europe can act decisively, defend its economic interests, and build strong partnerships that reflect its values and long-term strategic priorities.

Note to editors

The EPP Group is the largest political group in the European Parliament with 187 Members from all EU Member States

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