The India-EU Trade Deal: What It Delivers and What It Doesn't

For most of the last decade, a trade deal between India and the EU seemed unlikely. The nudge came as the world changed around both. Nicolas points to three converging forces: the pressure of US tariffs under Trump, which gave both sides political incentive to show they had other partners; the shared interest in reducing dependence on China for critical supply chains; and India's loss of GSP preferential treatment in the EU from January this year, which created a very concrete economic urgency on the Indian side. Together, these forces did what years of diplomatic goodwill could not. The deal itself is ambitious by India's standards, covering tariff elimination on 96.6% of EU goods exports, significant reductions on cars, wine and spirits, and new services commitments across sectors that were previously off the table. But Nicolas is candid about the gaps. There is no chapter on government procurement, the sustainability provisions lack any real enforcement mechanism, and investment protection has been deferred to a separate negotiation. On the regulatory side, Indian exporters still face the carbon border adjustment mechanism on steel and aluminium, strict food safety standards that have already led to hundreds of rejected shipments, and product testing requirements that a tariff cut alone cannot resolve. On mobility, Nicolas notes that the framework for Indian professionals is genuinely more promising than what was on offer in the original negotiations, partly because the UK is no longer in the room and partly because Europe's labour market has shifted significantly. But immigration policy remains a national competence, and many EU governments are currently run by or in coalition with parties for whom restricting migration is a core political position. The gap between what Brussels signs and what Vienna or Rome implement could be quite wide, and managing expectations around this will be one of the more delicate parts of the implementation process ahead. Every two weeks, Interpreting India brings you diverse voices from India and around the world to explore the critical questions shaping the nation's future. We delve into how technology, the economy, and foreign policy intertwine to influence India's relationship with the global stage. As a Carnegie India production, hosted by Carnegie scholars, Interpreting India, a Carnegie India production, provides insightful perspectives and cutting-edge by tackling the defining questions that chart India's course through the next decade. Stay tuned for thought-provoking discussions, expert insights, and a deeper understanding of India's place in the world. Don't forget to

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The India-EU Trade Deal: What It Delivers and What It Doesn't is an episode from Interpreting India by Carnegie India.

This episode is 00:51:27 long.

This episode was published on Apr 23, 2026.

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