New Delhi, Jan 27: By boosting bilateral trade and economic ties, the India–EU trade deal supports job creation, MSME growth in tech, and overall confidence for investors in India’s services sector, the IT industry’s apex body Nasscom said on Tuesday.
Support for SMEs and market diversification
The free trade agreement (FTA) includes dedicated SME chapters with contact points and digital platforms. Given the geopolitical challenges, the FTA diversifies markets for Indian IT exporters, providing a hedge against global trade uncertainties, Nasscom said.
“It strengthens India’s position in global value chains for digital services. We will await the detailed draft text to better understand the operationalising of the FTA provision,” it added.
Services sector gains through market access
While goods see major tariff cuts, services gains are more about opening markets and rules-based predictability.
With services being the dominant and faster-growing part of both economies, the gains would be in the form of better EU market access for Indian tech. This could lower non-tariff barriers and ease cross-border delivery, Nasscom said.
Digital trade and mobility provisions
“Digital trade rules will support business while protecting privacy, security and public policy. Indian IT firms stand to gain from greater opportunities in Europe, including easier cross-border provision of services (Mode 1 under GATS) and potentially improved mobility for professionals (though Mode 4),” it explained.
India and the EU have agreed on a constructive framework to enable Social Security Agreements within five years with all EU member states.
Boost to technology, innovation and investment
The agreement fosters deeper EU–India ties in technology, innovation and digital areas, building on the India–EU Trade and Technology Council.
This could lead to more EU investment in India’s IT ecosystem, joint ventures, and research and development in artificial intelligence, semiconductors, clean technology and startups. Indian IT companies could benefit from technology transfer, co-creation and expanded partnerships, Nasscom said.
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The trade agreement opens unprecedented market access for Indian exporters across goods and services, particularly empowering labour-intensive sectors, MSMEs, women entrepreneurs, artisans and youth — core focus areas of the government’s inclusive growth agenda.
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