India Targets Doubling Exports To EU Within Four Years After Free Trade Agreement

India is planning to double its exports to the European Union over the next three to four years by maximising the opportunities expected from the proposed India-EU Free Trade Agreement.

According to a report by NDTV Profit, the agreement is currently undergoing legal approval processes in the EU and could become operational by March 2027.

As per the report, government sources said India will focus on ensuring exporters fully utilise the market access opportunities created under the pact.

Govt plans wider EU engagement

The Centre plans to conduct high-level meetings with all EU member countries and increase business-to-business interactions to support exporters. Companies will also need to expand production capacity and comply with European standards to increase shipments to the bloc.

India’s exports to the EU stood at $72.39 billion in FY26, accounting for 16.40% of the country’s overall exports.

Officials said exporters would need to strengthen their capabilities and meet regulatory requirements to benefit from improved market access under the trade agreement.

Steel quota and carbon compliance challenges

India has secured a quota of 2.8 million tonnes for steel exports to the EU. Exports beyond this limit will attract a 50% tariff, according to the report.

Indian exporters will also need to comply with the European Union’s Carbon Border Adjustment Mechanism (CBAM), which imposes carbon-related requirements on certain imports.

To address these compliance challenges, India has sought quicker approval for six domestic verifier bodies that will help exporters meet carbon reporting requirements under the EU framework.

The government believes the trade agreement can significantly expand India’s presence in European markets, but exporters will need to improve scale, quality standards and regulatory compliance.

The proposed FTA is expected to provide greater market access for Indian businesses while strengthening trade ties between India and the European Union once implemented.