CII Hails India-EU FTA As Game-Changer, Sees Major Boost For Exports, Jobs & Strategic Ties

CII has hailed the India-EU Free Trade Agreement as a landmark breakthrough that will give Indian exporters unprecedented access to the EU market.

Banerjee said the unprecedented preferential market access for over 99% of Indian exports to the EU would decisively boost competitiveness.

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Key points generated by AI, verified by newsroom

• India-EU FTA announced, strengthening global trade and economic ties.
• Exports to EU gain preferential market access, boosting competitiveness.
• Sectors like textiles, gems, and IT to see significant growth.
• Agreement fosters investment, technology, and jobs amid global uncertainty.

The Confederation of Indian Industry (CII) on Tuesday welcomed the announcement of the India–European Union Free Trade Agreement (FTA), describing it as a landmark step that has strengthened India’s global trade position. In a statement, CII Director General Chandrajit Banerjee said the agreement represents a strategic breakthrough that deepens economic ties between two major democracies accounting for nearly 25% of global GDP. Banerjee said the unprecedented preferential market access for over 99% of Indian exports to the EU would decisively boost competitiveness in one of the world’s most high-value markets.

CII Flags Sector-Wide Growth Boost

According to CII, key beneficiary sectors include textiles and apparel, leather and footwear, gems and jewellery, marine products, engineering goods, automobiles, agriculture and processed foods, as well as IT, IT-enabled services and professional services. The FTA is also expected to deliver tangible gains for labour-intensive industries and MSMEs, while enabling a future-ready mobility framework for Indian talent. Banerjee said the agreement aligns closely with India’s vision of Viksit Bharat @2047 and lays the foundation for inclusive, globally competitive growth. He noted that the agreement would anchor Indian manufacturers and service providers deeper into global value chains while accelerating investment, technology inflows and industrial scale-up.

Summit Signals Strategic Economic Reset

The announcement follows momentum generated at the 16th India-EU Summit, which marked a diplomatic milestone with European Council President António Costa and European Commission President Ursula von der Leyen attending India’s Republic Day celebrations as chief guests.  The summit underscored growing strategic alignment between India and the EU and unlocked cooperation across trade, technology, security, climate action and education. Leaders from both sides hailed the FTA as a game-changer that will strengthen supply chains, boost bilateral trade and accelerate private investment. The agreement is expected to create new opportunities for nearly 20 million people and generate millions of jobs, offering both economies a competitive edge amid global economic uncertainties.

Security, Tech Cooperation Deepens

Prime Minister Narendra Modi, along with Costa and von der Leyen, reaffirmed shared commitments to democracy, human rights and a rules-based international order. They also agreed to deepen collaboration on sustainable development, climate action and biodiversity.  Security and defence featured prominently in the discussions, with enhanced cooperation planned in cyber security, counter-terrorism, maritime safety and space security. On the technology front, both sides committed to strengthening the EU-India Trade and Technology Council, with a focus on artificial intelligence, quantum computing, 6G and digital infrastructure—areas viewed as critical to future economic leadership.

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