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India

India

India is amongst the world’s fastest-growing large economies and is an important player in global economic governance. India is an important trade and investment partner for the EU. It represents a sizable and dynamic market, with an annual GDP growth rate of around 6% (pre-Covid-19).

 

 

Trade picture

  • The EU is India's largest trading partner, accounting for €80 billion worth of trade in goods in 2019 or 11.1% of total Indian trade, on par with the USA and ahead of China (10.7%).
  • The EU is the second-largest destination for Indian exports (over 14% of the total) after the USA.
  • India is the EU’s 10th largest trading partner, accounting for 1.9% of EU total trade in goods in 2019, well behind the USA (15.2%), China (13.8%) and the UK (12.6%).
  • Trade in goods between the EU and India increased by 72% in the last decade.
  • Trade in services between the EU and India increased rapidly from €22.3 billion in 2015 to €29.6 billion in 2018.
  • The EU's share in foreign investment inflows to India more than doubled from 8% to 18% in the last decade, making the EU the first foreign investor in India.
  • EU foreign direct investment stocks in India amounted to €68 billion in 2018, which is significant but way below EU foreign investment stocks in China (€175 billion) or Brazil (€312 billion).
  • Some 6,000 European companies are present in India, providing directly 1.7 million jobs and indirectly 5 million jobs in a broad range of sectors.
  • Indian companies invested over €50 billion in Europe since 2000.

EU-India: Trade in goods

Trade in goods 2017-2019, € billions
Year EU imports EU exports Balance
2017 36.0 37.0 1.1
2018 37.8 40.1 2.3
2019 39.6 38.2 -1.3

EU-India: Trade in services

Trade in services 2016-2018, € billions
Year EU imports EU exports Balance
2016 11.9 11.6 -0.3
2017 14.0 13.5 -0.5
2018 15.4 14.2 -1.2

EU-India: Foreign direct investment

Foreign direct investment 2018, € billions
Year Inward stocks Outward stocks Balance
2018 2.6 67.7 65.0

Unless otherwise mentioned “EU” concerns for all indicated years the current European Union of 27 Member States.

Date of retrieval: 22/04/2020

More statistics on India

EU and India

A key EU objective in its trade relations with India is to work towards a sound, transparent, open, non-discriminatory and predictable regulatory and business environment for European companies trading with or investing in India, including the protection of their investments and intellectual property. The aim is to contribute to unlocking the untapped potential of two-way trade between the EU and India.

Currently, India’s trade regime and regulatory environment remains relatively restrictive. Technical barriers to trade (TBT), sanitary and phyto-sanitary (SPS) measures, deviation from international standards and agreements, as well as discrimination based on legislative or administrative measures by India, affect a wide range of sectors, including goods, services, investment and public procurement.

The EU uses all available channels and fora to work with India to ensure fair market access and predictable investment conditions, as well as to promote the full respect by both sides of their multilateral obligations under the World Trade Organization (WTO). Key instruments in this respect are the EU-India Trade Sub-Commission established under the 1994 Cooperation and Partnership Agreement between the EU and India, as well as its specialised technical working groups.

For more information

More information on the EU-India strategic partnership, including in the area of trade and investment, can be found on the new EU Strategy for India adopted on 20 November 2018 and the related Council conclusions.

Trading with India