India and the European Union have officially announced the conclusion of the India–EU Free Trade Agreement at the 16th India–EU Summit, jointly unveiled by Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
Representing nearly 25% of global GDP, India and the European Union will significantly deepen their economic partnership through the FTA. More than 99% of Indian exports will benefit from preferential access to the EU market, strengthening India’s global competitiveness.
For the leather and footwear industry, the agreement is particularly significant. Tariffs of up to 17% will be reduced to zero, opening the door to the USD 100 billion EU leather and footwear market. Production clusters such as Agra, Kanpur, Kolhapur and Ranipet (Tamil Nadu) are expected to see employment growth, supported by design-led manufacturing and regional industrial development.
The FTA is projected to boost exports worth USD 75 billion, with nearly USD 33 billion coming from labour-intensive sectors including leather, textiles, apparel, gems and jewellery. Small and medium-sized enterprises (MSMEs), women entrepreneurs, artisans and young professionals are expected to be among the key beneficiaries.
Beyond goods, the agreement delivers ambitious commitments in services, digital trade and professional mobility, while safeguarding sensitive agricultural and dairy sectors. Overall, the India–EU FTA lays the foundation for inclusive, resilient and future-ready growth across both economies.
