Fresh data spotlights a golden opportunity for India’s trade ambitions. Rubix Data Sciences reports that the EU FTA could unlock $10-11 billion in additional exports—achievable by repurposing exports disrupted by US tariffs, sans new infrastructure.
Focus on the numbers: 52% of India’s $45 billion US exports come from 15 categories. Twelve of them, at $21 billion, are underrepresented in EU imports. A 50% redirection, fueled by tariff relief and access improvements, could redefine trade balances.
India-EU commerce, steady at $136.5 billion over three years, marked EU as FY25’s top partner. Still, penetration is low—2.9% of EU imports, 1.9% exports—with 70% concentrated in five nations. The EU’s $21.1 trillion economy grows anemically at 1.4%, hit by slumps in major economies.
Adding heft, EU FDI totals $119.2 billion in India over two decades, 16.5% of all inflows. As protectionism rises globally, the FTA positions India to sidestep US hurdles, diversify risks, and elevate its stature in Europe’s marketplace.