EU and India strengthen trade relations

The European Union (EU) and India have been looking for new ways to deepen their ties and economic relations. 


India is one of the world’s fastest-growing economies (with GDP increasing by 6% per year before the pandemic). The EU is India’s largest trading partner, accounting for 11.1% of India’s trade in 2019, ahead of powers such as the USA and China.


  • What motivates this closer relationship?

The two global powers share common values and challenges, such as climate change and strong economic relations between the two countries.


  • What steps have already been taken?

In 2004, the EU and India signed a strategic partnership, based on common values and a multilateral rules-based international order. 

With the strengthening of relations between the EU and India, it has already been possible to see an increase in trade and investment by both parties, as in the last 10 years trade in goods has increased by 72%, and the EU share of foreign investment flows has increased by 10%. Currently, there are about 4.500 EU companies operating in India, which translates into six million jobs (direct and indirect).


Considering India’s rapidly increasing economic and regional position, a roadmap for a strategic partnership was approved by the two nations in 2020, binding until 2025


  • What is foreseen for the future?

Recently, European Council President Charles Michel announced that India and the EU have accorded to negotiate agreements on trade, investment protection and geographical indications. At the EU-India leaders’ meeting on May 8, the leaders agreed to resume free trade negotiations and to begin negotiations on two additional trade agreements. In addition, they launched a new connectivity partnership.


By strengthening trade links between the two geographies, they also aim to promote human rights, democracy, and gender equality, as well as climate change mitigation.


With a network of international consultants, Market Access supports the internationalization of companies and organizations to the Japanese market. Despite the geographical and cultural distance, many European  industries have great acceptance in the market. Contact us to learn more! 

See below the European Commission’s infographic on the trade relations between the two territories:



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