January 28, 2026
EU–India trade agreement: New opportunities for companies
LBBW explains the opportunities for German companies to tap into new markets. Find out how your company benefits from free trade.
After nearly two decades of negotiations, the European Union and India have concluded a historic free trade agreement (FTA), regarded as the “Mother of all Deals,” which elevates economic cooperation to a new level.
This agreement opens far reaching prospects for market access, growth, and strategic diversification in Asia for companies in Europe—especially in export strong Germany.
Economic significance and effects
The agreement aims to drastically reduce tariffs and trade barriers: for around 96% of goods traded between the EU and India, tariffs will be eliminated or significantly reduced, strengthening the competitiveness of European exporters.
Particular advantages arise for key sectors such as automotive, mechanical engineering, chemicals, pharmaceuticals, and services.
Analyses indicate that bilateral trade between the EU and India could increase by up to 65% through deeper economic integration, supporting both growth and the stability of global supply chains.
For German companies, this means:
- Better market access to one of the world’s most dynamic growth markets
- Lower tariffs on export goods
- Expanded opportunities for investment, partnerships, and services
- Reliable legal and competitive conditions
Strategic advantage for international expansion
Especially in times of global trade uncertainty, the agreement provides a strong economic impulse to expand international business activities. Companies with export and growth ambitions gain a clear strategic advantage over competitors through bilateral agreements like this one.
LBBW international network: local expertise in India
A central point of contact for companies looking to leverage the new opportunities in EU–India trade is LBBW’s representative office in Mumbai. For over 25 years, LBBW has supported German and European clients with market entry and business activities in India—through local market knowledge, network contacts, and practical on‑site advice.
LBBW in MumbaiEU–India trade agreement FAQ
What is the EU–India trade agreement?
A comprehensive free trade agreement between the European Union and India that reduces tariffs, removes trade barriers, and eases market access between the two economic areas.
Why is the agreement relevant for companies?
India is one of the fastest growing markets worldwide. The agreement improves competitive conditions, lowers costs, and creates new sales and investment opportunities
Which sectors benefit most?
Especially mechanical engineering, the automotive industry, chemicals, pharmaceuticals, services, and export oriented SMEs.
When will the agreement enter into force?
After signature and ratification by the EU and its member states; implementation will take place gradually over several years.
How does LBBW support companies in India?
With local expertise, market knowledge, and on the ground presence through its representative office in Mumbai.
Do you have questions?
We look forward to speaking with you.
