EU–India trade deal moving closer to reality

The EU and India have concluded a new free trade agreement that is expected to reduce or eliminate tariffs on a large share of European exports to India once it enters into force. For European exporters and importers, the agreement could create new opportunities for trade between the two markets.

The agreement has not yet entered into force and still requires formal approval and ratification before the new trading conditions apply.

For a Danish overview of the agreement, read more here:
https://www.danskerhverv.dk/presse-og-nyheder/nyheder/2026/januar/historisk-handelsaftale-mellem-eu-og-indien-giver-nye-forretningsmuligheder-for-danske-virksomheder/

Improved trade conditions – and what this could mean in practice

According to the overview from the Danish Chamber of Commerce, the agreement is expected to reduce or remove tariffs on a large share of goods exported from Europe to India.

For certain product categories, the expected reductions are significant. For example:

  • Machinery and industrial equipment: tariffs of up to 44% are expected to be reduced to 0% for most products.
  • Furniture, lighting and interior products: tariffs currently around 15–20% are expected to be reduced to 0%.

If implemented as announced, reductions of this scale could significantly improve the price competitiveness of European exporters in the Indian market.

If improved trading conditions lead to increased trade between Europe and India, this could over time influence transport flows between the two regions – particularly for companies exporting to or importing goods from India.

From a logistics perspective, this could mean:

  • Increased cargo volumes between the EU and India
  • Greater focus on efficient documentation and predictable customs and clearance processes
  • Continued demand for both sea freight and air freight solutions depending on cargo type and delivery timelines

At this stage, the key message is timing: the agreement has not yet entered into force, and there is therefore no need to change day-to-day transport setups. We are closely monitoring developments and will share updates once confirmed implementation dates and practical requirements become clear.

How Blue Water can support

We support European customers shipping goods to India with both sea freight and air freight solutions.

Sea freight:

  • FCL (Full Container Load) and LCL (Less than Container Load)
  • Project and oversized cargo
  • Shipping documentation support and coordination
  • End-to-end transport from origin to destination

Air freight:

  • International air freight solutions between Europe and India
  • Coordination of time-sensitive shipments
  • Documentation and customs support

We are monitoring developments closely and will share updates as soon as more information becomes available regarding implementation and the practical framework.

Show more