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India
India is currently the world’s fastest-growing large economy. India represents a sizable and dynamic market, with an annual GDP growth rate of around 7% and is an important player in global economic governance. India is an important trade and investment partner for the EU.
Trade picture
- The EU is India's largest trading partner, accounting for €92 billion worth of trade in goods in 2018 or 12.9% of total Indian trade, ahead of China (10.9%) and the USA (10.1%).
- The EU is the leading destination for Indian exports (almost 18% of the total).
- India is the EU’s 9th largest trading partner, accounting for 2.3% of EU’s total trade in goods in 2018, well behind the USA (16.9%) and China (15.3%).
- Trade in goods between the EU and India increased by 72% in the last decade.
- Trade in services between the EU and India increased from €23 billion in 2010 to €29 billion in 2016. India is now the 4th largest service exporter to the EU and the 6th largest destination for EU services exports.
- 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 €73 billion in 2016, which is significant but way below EU foreign investment stocks in China (€178 billion).
- Some 6,000 EU 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
| Year | EU imports | EU exports | Balance |
|---|---|---|---|
| 2016 | 39.3 | 37.8 | -1.5 |
| 2017 | 44.0 | 41.7 | -2.3 |
| 2018 | 45.8 | 45.7 | -0.2 |
EU-India: Trade in services
| Year | EU imports | EU exports | Balance |
|---|---|---|---|
| 2015 | 15.1 | 15.2 | 0.1 |
| 2016 | 15.7 | 14.4 | -1.3 |
| 2017 | 17.1 | 16.6 | -0.5 |
EU-India: Foreign direct investment
| Year | Inward stocks | Outward stocks | Balance |
|---|---|---|---|
| 2017 | 11.2 | 76.7 | 65.5 |
Date of retrieval: 17/04/2019
EU and India
EU-India trade negotiations
Negotiations for a comprehensive Free Trade Agreement (FTA) between the EU and India were launched in 2007 and suspended in 2013 due to a gap in the level of ambition between the EU and India. The EU remains committed to working towards an ambitious, comprehensive and balanced agreement FTA with India that responds to each side's key interests and is a win-win.
The EU continues engaging with India to ensure that such an agreement is economically meaningful, delivering real new market openings in all sectors to both sides, contains a solid rules-based component, and includes a comprehensive trade and sustainable development chapter, notably in order to deal with social and environmental impacts. Ensuring a high level of investment protection in order to remain an attractive destination for new investments is also a key dimension.
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). A key instrument in this respect is the EU-India Trade Sub-Commission established under the 1994 Cooperation and Partnership Agreement between the EU and India, and which meets annually. Furthermore, a number of technical working groups have been established to discuss a broad range of trade-related issues such as SPS and TBT, agriculture, animal and plant health, steel, etc.
The EU and India also share an interest in sustaining a rules-based multilateral trading system, with the World Trade Organisation (WTO) at its centre. While the multilateral trading system has been instrumental in integrating the global economy and helping to prevent protectionism, it is confronted with a serious crisis. The EU seeks India’s constructive engagement in addressing global trade challenges in the WTO and strengthening a rules-based multilateral trading system.
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
- Importing into the EU from India
- EU trade defence measures on imports from India
- Exporting from the EU to India
- The EU is present on the ground in India
- Trade relations are part of the EU's overall political and economic relations with India
- India is a member of the World Trade Organisation