IV Welcomes Political Agreement on the EU-India Free Trade Agreement

The Federation of Austrian Industries (IV) welcomes today’s conclusion of negotiations on a free trade agreement between the EU and India. “In a world increasingly marked by protectionism and trade restrictions, strong free trade is needed as a counterbalance. Countries that rely on rules-based exchange and cooperation must form new alliances together so as not to be at the mercy of the ‘law of the jungle.’ With today’s political agreement in principle between the EU and India, we have taken another step toward strengthening our economic ties,” says IV Secretary General Christoph Neumayer.

The agreement provides for a gradual reduction of tariffs on EU exports to India in key sectors—particularly in the industrial sector. Specifically, the automotive and chemical industries could benefit from higher sales in India, and total EU exports to India could double by 2032. Closer cooperation in the areas of sustainability and climate is also planned—India is already a key trading partner in European and global energy, climate, and raw materials policy.

In 2024, Austrian exports of goods to India reached a volume of 1.31 billion euros—from January to October 2025, exports rose by a further 13 percent compared to the previous year. Around 160 Austrian companies operate in India, providing more than 13,000 jobs there.

“India is a growth market for Europe and Austria: From 2004 to 2024, Austrian exports to India grew by 372.3 percent to 1.3 billion euros, making the conclusion of this agreement all the more important. “Against the backdrop of current economic pressures in Europe, geopolitical uncertainties, and U.S. tariff policies, new sales markets and stable partnerships are of central importance for Europe and Austria,” said Neumayer.