EU imports from India reached $77.06 billion in 2024, with key products including electrical and electronic equipment, organic chemicals, and machinery. The ongoing EU-India Free Trade Agreement (FTA), expected to conclude by the end of 2025, will likely lead to increased trade and may impact the value and volume of goods exchanged between the two regions in 2025 and beyond.
Key Trends and Factors in 2025
Free Trade Agreement (FTA): A comprehensive FTA between the EU and India is anticipated to be finalized in late 2025, which could significantly boost two-way trade.
Trade Growth: India-EU trade has been robust, with the EU being India's largest trading partner, and a significant increase of 90% in goods trade over the last decade.
Geopolitical Context: The negotiations for the FTA have regained momentum due to geopolitical shifts, including the EU's desire to strengthen ties with Indo-Pacific partners and India's goal to diversify its imports, according to Roedl.com.
Key
Import Sectors
The
following sectors are a major focus for EU imports from India:
Electrical
& Electronic Equipment: This was the top category of EU imports from
India in 2024.
Organic
Chemicals: Organic chemicals also represented a significant import value for
the EU in 2024.
Pharmaceuticals:
This sector is an important area of trade, with the EU importing pharmaceutical
products from India.
Machinery
Iron & Steel: These industrial goods are also key components of EU
imports from India.
Textiles and Apparel’ Articles of apparel, both knit and non-knit, are significant imports from India to the EU.
Factors
Influencing Future Trade
· Logistics
Improvements: Expansions in air cargo capacity, such as new FedEx direct
flights from India to Europe, are increasing logistical capabilities and
reducing transit times.
· Government Support: Indian government schemes like the Production Linked Incentives can support exporters, further contributing to the export of Indian goods to the EU.
Final 2025 data for EU imports from India is not yet available, but year-end forecasts indicate a continuation of strong trade growth, potentially bolstered by a new free trade agreement (FTA). For 2024, the EU's imports from India were valued at $77.06 billion.
Top
imports from India
The
EU's imports from India are diverse. In 2024, the main goods imported
included:
· Machinery and
appliances
· Chemicals
· Base metals
· Mineral products
· Textiles, apparel, and
footwear
· Electrical and
electronic equipment
· Pearls and precious
stones
· Pharmaceutical products
Key
developments affecting 2025 imports
Several
factors are expected to influence EU imports from India in 2025:
· Impending
FTA: India and the EU are in the final stages of negotiating an FTA, with
talks intensified in 2025 to meet a year-end deadline. If completed, this
agreement would significantly reduce or eliminate tariffs on many products,
boosting trade.
· Geopolitical
alignment: Both the EU and India are seeking to strengthen trade ties to
diversify their supply chains and reduce dependence on other markets,
particularly China.
· India's export
promotion: Indian officials are actively working to expand market access
for Indian exports. The government is also addressing domestic issues like
technology and high import tariffs on raw materials that hinder export
competitiveness.
· Sustainability and
regulatory issues: The EU's Carbon Border Adjustment Mechanism (CBAM)
remains a point of negotiation, with India seeking exemptions or special
consideration for its exporters. How this is resolved will impact Indian
imports of steel, aluminum, and other carbon-intensive goods.
· Increased competition: India is also negotiating trade deals with other major partners, including the United Kingdom and the United States, which creates pressure and urgency for all parties involved.
Forecast
for 2025
Analysts
project a continued upward trend in EU-India trade. Should the FTA be
successfully implemented by the end of 2025, it is expected to create a
significant upswing in trade volumes in the following years. Key areas of
potential growth for Indian exports include textiles, apparel, and vehicles,
but this is contingent on negotiating market access and tariff issues.
2024 trade statistics
For
context, the EU is India's second-largest trading partner, while India is the
EU's ninth-largest.
· 2024 goods
trade: The bilateral goods trade reached approximately €120 billion.
· 2023 services trade: Trade in services amounted to €59.7 billion.
https://www.google.com/search?q=eu+imports+from+india+2025
Comments
The EU could greatly influence India’s rejection of Russian Imports.
Norb Leahy, Dunwoody GA Tea Party Leader
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