India-EU FTA: Duty-free access to 99% of Indian exports, 9,425 tariff lines opened | Key details

India and the European Union on Tuesday announced the conclusion and signing of the much-awaited Free Trade Agreement (FTA), which has been dubbed as the “mother of all deals”.

Speaking on the historic development, Prime Minister Narendra Modi said at a joint presser after the India-EU Summit talks at the Hyderabad House in New Delhi: “Today, India has concluded the biggest Free Trade Agreement in its history. On 27th January, India signed this FTA with 27 European nations. This will boost investment, form new innovation partnerships and strengthen supply chains at the global level. This is not just a trade agreement, it is a blueprint for shared prosperity.”

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Present at the joint presser were Ursula von der Leyen, the president of the European Commission, and António Luís Santos da Costa, the president of the European Council.

Here are the key details of the India-EU FTA:

• 9,425 tariff lines opened for Indian goods under the India-EU FTA, providing access to a USD 20 trillion market.
• Over 99 per cent of Indian export value now enters the European Union duty-free.
• The FTA enables access to the EU’s 144 subsectors, like IT services, education, financial services, tourism, etc.
• Further, 102 Indian sectors are unlocked for EU investment and high-tech growth.
• The FTA will provide a boost to artificial intelligence, clean technologies and semiconductors.
• Duty-free entry on 97.5 per cent of Indian exports in chemicals and petrochemicals. The EU has a USD 500 billion market in this sector.
• Tariffs on leather and footwear slashed from 17 per cent to zero per cent. The EU has a USD 100 billion leather and footwear segment.
• The FTA allows lower tariffs for Made-in-India medical devices, opening up a USD 572 billion EU market for India.
• The EU has granted 100 per cent duty-free access for gems and jewellery. The EU has a USD 79 billion premium market for this sector.
• In marine and seafood, full preferential access granted to Indian exports in a market pegged at USD 53.6 billion.
• In the textiles and apparel sector, Indian exports will now attract zero duty on 100 per cent tariff lines and value. The EU textile market is pegged at USD 263 billion.
• In the agriculture and food sector, India’s exports of grapes, tea, coffee, spices, gherkins, ghee, cucumbers, sweetcorn, dried onions, etc, will get preferential access. Important point to note is that as expected, dairy, poultry and cereals will remain fully shielded under the India-EU FTA.
• In the engineering and manufacturing sector, Indian exports are getting a direct entry into the USD 2 trillion industrial market. Further, Indian engineering goods will get preferential access.
• The FTA will enable seamless movement for professionals and exports.
• FTA allows an assured post-study visa framework of at least nine months.
• Access granted for practitioners of Indian traditional medicine to work in EU states under their home titles.

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