India-EU Trade Deal Under Scrutiny: Will the Free Trade Agreement Hurt Indian Industries and Give Europe an Edge?

The India-EU trade deal, often called the “mother of all deals,” marks a major shift in global economic relations, with India and the European Union accounting for nearly 25% of global GDP. While the India-EU Free Trade Agreement opens access to Europe’s USD 263.5 billion textile and apparel market, concerns remain over its impact on Indian industries. The deal lowers luxury car tariffs under the India-EU FTA, potentially challenging Indian automobile manufacturers, while the EU’s CBAM policy continues to impose costs on carbon-intensive Indian exports. As the India-EU trade deal moves toward implementation in 2027, questions persist over whether Indian industries will benefit equally or face competitive pressure from European markets.