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India

India is currently the fastest growing economy in the world and a strategic partner for the EU, representing a sizable and dynamic market of 1.25 billion people. For these reasons, the EU and India are committed to further increase their bilateral trade and investment through the Free Trade Agreement negotiations that were launched in 2007.

After substantial progress was made through a number of negotiation rounds, discussions are currently focused on key outstanding issues that include improved market access for some goods and services, government procurement, geographical indications, sound investment protection rules, and sustainable development.

Trade picture

  • The EU is India's number one trading partner (13.5% of India's overall trade with the world in 2015-16), well ahead of China (10.8%), USA (9.3%), UAE (7.7%) and Saudi Arabia (4.3%).
  • India is the EU's 9th trading partner in 2016 (2.2% of EU's overall trade with the world), after South Korea (2.5%) and ahead of Canada (1.9%).
  • The value of EU exports to India grew from €24.2 billion in 2006 to €37.8 billion in 2016, with engineering goods, gems and jewellery, other manufactured goods and chemicals ranking at the top.
  • The value of EU imports from India also increased from €22.6 billion in 2006 to €39.3 billion in 2016, with at the top textiles and clothing, chemicals and engineering goods.
  • Trade in services almost tripled in the past decade, increasing from €10.5billion in 2005 to €28.1 billion in 2015.
  • EU investment stocks in India amounted to €51.2 billion in 2015, increasing from €44.2 billion in the previous year.

EU-India: Trade in goods

Trade in goods 2014-2016, € billions
Year EU imports EU exports Balance
2014 37.1 35.6 -1.5
2015 39.5 38.1 -1.3
2016 39.3 37.8 -1.5

EU-India: Trade in services

Trade in services 2013-2015, € billions
Year EU imports EU exports Balance
2013 12.6 11.7 -0.9
2014 11.7 12.5 0.7
2015 13.7 14.4 0.8

EU-India: Foreign direct investment

Foreign direct investment 2015, € billions
Year Inward stocks Outward stocks Balance
2015 15.9 51.2 35.3

Date of retrieval: 15/02/2017

More statistics on India

EU and India

India has embarked on a process of economic reform and progressive integration with the global economy that aims to put it on a path of rapid and sustained growth.

However, India's trade regime and regulatory environment remains comparatively restrictive (see World Bank 2016 Ease of Doing Business Report, Commission 2016 Report on Trade and Investment Barriers and Protectionist Trends).

With its combination of rapid growth, complementary trade baskets and relatively high degree of market protection, India is an obvious partner for a free trade agreement (FTA) for the EU.

The parameters for an ambitious FTA were set out in the report of the EU-India High Level Trade Group in October 2006.

Other studies have reinforced the economic potential of an FTA between the EU and India, notably a sustainability impact assessment concluded in 2009.

Trading with India