New Delhi: India is targeting a doubling of its exports to the European Union within the next three to four years as the government prepares to maximise the benefits of the proposed India-EU Free Trade Agreement (FTA). The target comes as the landmark trade pact moves through legal approval processes in the European Union and could come into force by March 2027.
India’s exports to the EU stood at $72.39 billion in FY26, accounting for 16.40% of the country’s total exports. The government now wants Indian exporters to take fuller advantage of the market access expected under the FTA and expand shipments across the 27-member bloc.
Government plans wider engagement with EU nations
According to people familiar with the matter cited by NDTV Profit, the government plans to engage with all EU member countries through high-level delegations and business-to-business meetings.
The objective is to help Indian companies identify opportunities in individual European markets and make greater use of tariff concessions and other market-access provisions under the trade agreement.
The government is also encouraging exporters to increase production capacity and ensure that their products comply with European standards. Meeting technical, environmental and regulatory requirements will be important for companies seeking to substantially increase shipments to the EU.
The approach reflects a shift towards implementation and utilisation of the trade agreement rather than focusing only on tariff reductions.
India seeks to expand exports from current levels
India’s $72.39 billion in exports to the EU during FY26 provides the base for the government’s three-to-four-year target.
Doubling exports from that level would require Indian businesses to significantly expand their presence across European markets. The government expects greater market access under the FTA to support this expansion, provided exporters can meet demand and comply with EU regulations.
The India-EU agreement covers a wide range of goods and services and is intended to reduce trade barriers between the two sides.
The European Commission has said the agreement would eliminate or reduce tariffs on 96% of EU goods exports to India. The pact still requires approval through the EU’s institutional process before it can take effect.
Exporters face capacity and compliance challenges
While lower trade barriers can create opportunities, Indian exporters will need to address capacity constraints and regulatory requirements to convert those opportunities into higher shipments.
Government sources said exporters would need to expand their capacity and meet the standards required in European markets.
This is particularly relevant for sectors where European regulations impose detailed requirements relating to product quality, sustainability, emissions and traceability.
The government plans to support exporters through greater engagement with individual EU countries, including business-to-business meetings designed to connect Indian companies with potential European buyers.
Steel exports get 2.8 million-tonne quota
Steel is among the sectors where the FTA’s market-access provisions will be closely watched.
India has secured a 2.8 million-tonne quota for steel exports to the EU, according to government sources cited in the report. Steel exports beyond this quota will face a 50% tariff.
The quota could provide additional opportunities for Indian steel producers, although exporters will still have to navigate European regulatory and carbon-related requirements.
The arrangement is particularly significant as steel remains one of the industries facing increased scrutiny over the carbon intensity of production.
Carbon rules remain a key issue
The European Union’s Carbon Border Adjustment Mechanism (CBAM) will also apply to Indian exports.
CBAM is designed to address the carbon content of certain imported products and is an important consideration for Indian industries exporting carbon-intensive goods to Europe.
India has sought faster approval for six domestic verifier bodies as part of its efforts to meet compliance requirements connected with the EU’s carbon mechanism, according to the sources cited by NDTV Profit.
The availability of domestic verification capacity could help Indian exporters deal with documentation and certification requirements as trade with the EU expands.
India-EU FTA moves towards implementation
India and the European Union concluded their landmark FTA in January 2026 after years of negotiations. The agreement is expected to create greater market access for businesses on both sides.
The pact covers a market involving India and the EU’s combined population and economic strength, while reducing or eliminating tariffs across a large share of traded goods.
Earlier, the European Commission said the agreement would remove or reduce tariffs on 96% of EU goods exports to India. India is simultaneously undertaking its internal approval process.
The agreement could come into force by March 2027, subject to the completion of the required legal and approval procedures.
Export growth target puts focus on execution
The government’s target of doubling exports to the EU within three to four years places greater emphasis on how effectively Indian businesses use the market access created by the FTA.
Lower tariffs alone may not automatically translate into higher exports. Indian companies will need to scale production, maintain consistent quality, meet European standards and build stronger commercial relationships with buyers across the bloc.
The government’s planned delegations and business-to-business engagements are intended to support this process.
For exporters, the coming years could therefore involve both opportunities and additional compliance requirements. The ability to meet European standards while expanding capacity will be central to India’s efforts to raise exports beyond the current $72.39 billion level.
With the FTA moving closer to implementation, India is now focusing on converting the agreement’s market-access provisions into actual export growth and deeper commercial engagement with European economies.