Economic Relations of the European Union with India

Authors:

Pages: 46-61

Abstract:

The European Union and India are the two largest democracies in the world. They repre sent almost one fifth of the global trade and around 25% of the global population. The EU and India are close partners that work together to promote economic prosperity, rules-based international order, and sustainable development. India is the EU’s 9th largest trading partner, accounting for 2.4% of the EU’s total trade in goods in 2024. Trade in services between the EU and India reached €66.1 billion in 2024, up from €30.4 billion in 2020. The EU is the largest trading partner for India — ahead of China and USA — accounting for 11.4% of India’s trade in goods. In 2024, EU-India trade in goods was worth over €120 billion – with €71.3 billion in EU imports and €48.8 billion in EU exports. In the last decade, bilateral trade has doubled: EU imports grew by 140% while EU exports grew by 58%. In June 2022, the European Union relaunched negotiations with India for a free trade agree ment. On 27 January 2026, during the EU-India summit, leaders from both parties hailed the success ful conclusion of negotiations on the free trade agreement.

Keywords:

European Union; India; foreign trade; foreign direct investment.

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