India–EU FTA seals new era of OEM-led manufacturing and supply-chain integration

Designed as a modern, rules-based trade framework, the FTA directly addresses today's global supply- chain realignments and positions India and the EU as long-term partners in advanced manufacturing, mobility, engineering, and industrial technologies.

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India and the European Union (EU) have concluded negotiations for a Free Trade Agreement (FTA), marking a pivotal moment for OEM-led industrial cooperation between two of the world’s largest manufacturing economies.

Designed as a modern, rules-based trade framework, the FTA directly addresses today’s global supply-chain realignments and positions India and the EU as long-term partners in advanced manufacturing, mobility, engineering, and industrial technologies.

With a combined market size exceeding ₹ 2091.6 lakh crore (USD 24 trillion) and serving nearly 2 billion consumers, the FTA creates unprecedented opportunities for OEMs, Tier-1 and Tier-2 suppliers, and MSME manufacturers across automotive, machinery, electrical equipment, aerospace, and industrial goods. By delivering preferential market access for over 99% of India’s exports by trade value, the agreement significantly strengthens India’s integration into European OEM value chains while safeguarding critical domestic priorities.

Strengthening India-EU OEM trade and supply chains