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India-EU Trade Pact Welcomes SMEs for First Time
10 May
Summary
- New FTA includes SMEs for the first time, benefiting small businesses.
- Agreement ensures level playing field for telecom operators.
- India-EU trade volume reached $136 billion in 2024-25.
India's chief trade negotiator announced a new Free Trade Agreement (FTA) with the European Union, emphasizing its inclusion of small and medium enterprises (SMEs) for the first time in an Indian FTA. This pact signifies a milestone for small businesses seeking international trade opportunities.
The agreement establishes a predictable regime for critical sectors including maritime services, digital trade, paperless trading, and e-contracts, alongside robust consumer protection measures. It also ensures a level playing field for telecom operators in both markets through non-discriminatory access and transparent pricing.
India's trade with the EU, its largest goods trading partner, reached about $136 billion in the 2024-25 period. Services exports from India are also growing rapidly, nearing the value of the country's goods exports.
