India and the European Union (EU) share strong business relations, with the EU being India’s second-largest trading partner. Key exports from India include textiles, pharmaceuticals, and IT services, while India imports automobiles, machinery, and medical equipment from the EU. The EU is also a major source of Foreign Direct Investment (FDI) in sectors like automobiles, energy, and infrastructure.
India and the EU have been negotiating a Free Trade Agreement (FTA) since 2007, which was relaunched in 2022 to focus on tariff reductions and sustainability. Both sides also cooperate on climate change, clean energy, digital transformation, and defense, particularly in maritime security and counter-terrorism.
While challenges like trade barriers and regulatory differences remain, opportunities exist in renewable energy, pharmaceuticals, and IT. Finalizing the FTA could further strengthen trade and investment between India and the EU.