Overview
- Commission Implementing Regulation (EU) 2025/1909 is in force from January 1, 2026 to December 31, 2028, suspending specified GSP preferences for India under the EU’s graduation rules.
- Think tank GTRI estimates about 87% of India’s export value to the EU now moves to full MFN tariffs, citing examples such as apparel rising from 9.6% under GSP to 12% MFN.
- The Commerce Ministry says only €1.66 billion of trade graduates out of GSP based on 2023 data, leaving an overall impact of 2.66% of India’s exports to the EU, with agricultural lines spared and leather reinstated.
- Exporters’ body FIEO says the broad product sections mask tariff lines that already face zero MFN duty or still qualify for GSP, urging company-level HS code checks and noting the measure extends an existing suspension.
- Analysts warn of a near-term squeeze as the GSP change coincides with the EU’s CBAM tax phase, and any India‑EU free trade pact is expected to take at least a year to implement after a potential political conclusion next week.