Assessment of EU-India FTA in View of Geopolitics and Trade: Opportunities and Tariff & Non-Tariff Barriers

Abstract

This paper focuses on the ramifications of the EU-India free trade agreement and how they affect both blocs in light of the changing geopolitical environment and the significant nations' roles in global trade and politics. Subsequently, both India and the European Union (EU) stand to gain significant advantages with the deals. Annual business transactions between the EU and India total more than €180 billion. The agreement is expected to have a significant positive impact on the EU economy. In January 2026, India and the EU concluded a trade agreement that had been negotiated for two decades. A multitude of variables, particularly shifting geopolitical dynamics, US tariffs, and the global economy, accelerated up and concluded the negotiations for both blocs. Along with processed food items, the European Union is probably going to benefit most from the automotive, wine, spirits, and other alcohol industries. Additionally, the chemical sector, IT specialists, and service mobility are anticipated to benefit India. The reduction in the tariff will help in increasing the scalability of the trade, but there are several non-tariff barriers that also need to be negotiated to implement the FTA agreement in its spirit.