EU trade relations with India
India is among the fastest growing major economies in the world and an important player in global economic governance. India is an important trade and investment partner for the EU. It represents a large and dynamic market, with an annual GDP growth rate of around 6% (before Covid-19).
- The EU is India’s third-largest trading partner, accounting for €62.8 billion in trade in goods in 2020, or 11.1% of total Indian trade, after China (12%) and the United States. United (11.7%). The EU is the second largest destination for Indian exports (14% of the total) after the USA.
- India is the 10 in the EUand largest trading partner, accounting for 1.8% of total EU trade in goods in 2020, far behind China (16.1%), the US (15.2%) and the UK (12. 2%).
- Trade in goods between the EU and India has increased by 12.5% over the last decade.
- Trade in services between the EU and India reached €32.7 billion in 2020. The EU’s share of foreign investment inflows into India more than doubled from 8% to 18 % over the last decade, making the EU the largest foreign investor in India.
- EU foreign direct investment stock in India stood at €75.8 billion in 2019, which is significant but much lower than EU foreign investment stock in China (€198.7 billion). billion euros) or in Brazil (318.9 billion euros).
- Some 6,000 European companies are present in India, directly providing 1.7 million jobs and indirectly 5 million jobs in a wide range of sectors.
EU and India
One of the EU’s main objectives in its trade relations with India is to work towards a healthy, transparent, open, non-discriminatory and predictable regulatory and business environment for European companies trading with India. or invest in India, including the protection of their investments and intellectual property. The aim is to help unlock the untapped potential of bilateral trade between the EU and India.
Currently, India’s trade regime and regulatory environment remain relatively restrictive. Technical Barriers to Trade (TBT), Sanitary and Phytosanitary (SPS) measures, deviations from international standards and agreements, as well as discrimination based on legislative or administrative measures by India, affect a wide range of sectors , including goods, services, investment and public procurement.
The EU uses all available channels and forums to work with India to ensure fair market access and predictable investment conditions, as well as to promote full compliance by both sides with their multilateral obligations under of the World Trade Organization (WTO). The main instruments in this regard are the EU-India Trade Sub-Committee established under the 1994 Cooperation and Partnership Agreement between the EU and India, and its specialized technical working groups.
For more information
Further information on the EU-India strategic partnership, including in the area of trade and investment, is available on the website new EU strategy for India adopted on 20 November 2018 and the related Council conclusions.
EU-India Trade Negotiations
On 8 May 2021, the leaders of the EU and India agreed to resume negotiations for a “balanced, ambitious, comprehensive and mutually beneficial” trade agreement, and to launch separate negotiations on a trade agreement. investment protection and another on geographical indications. They agreed to link trade negotiations to the search for “solutions to long-standing market access problems”. In addition, leaders agreed to establish a dialogue on WTO issues as well as joint working groups on regulatory cooperation and resilient supply chains. The EU-India High Level Trade and Investment Dialogue has been tasked with overseeing the implementation of these decisions.
Both parties are now engaged in internal preparations to move these different strands of work forward.