Overview
- The European Commission presents the EU–India agreement as a diversification move to lower China-related supply risks rather than a break in ties.
- Tariff cuts are expected to boost Indian competitiveness in labor‑intensive goods such as textiles, apparel, footwear, leather products and jewelry.
- Constraints persist in higher‑value sectors because India relies on Chinese and East Asian inputs, including pharmaceutical ingredients, chips, screens, rare earths and advanced semiconductors.
- The accord is reported to create the world’s largest free‑trade area, encompassing roughly 2 billion people.
- Following the signing in New Delhi, European Council President António Costa stopped in Hanoi for a strategic partnership with Vietnam as the EU also advances deals with Indonesia and negotiations with the Philippines and Malaysia, seeking alternatives under pressure from U.S. tariffs.