Key Highlights of the Agreement
On January 27, 2026, in New Delhi, the Free Trade Agreement (FTA) between the European Union and India was officially signed. For logistics and foreign trade operators, this pact represents more than just the elimination of tariffs; it marks the birth of a simplified customs corridor built on supply chain trust and security.
Export: Opening the Indian Market
The agreement provides for the elimination or reduction of tariffs on 96.6% of European goods. We anticipate the highest cargo volumes in the following sectors:
- Machinery & Industrial Equipment: Duties on industrial machinery, currently as high as 44%, will be progressively phased out. This remains the driving force of Italian exports.
- Automotive & Spare Parts: Tariffs on cars will drop drastically from 110% to 10%. For components and spare parts, duties will be completely eliminated within 5-10 years.
- Premium Agri-food: * Wine: Duties will decrease from 150% to a final threshold of 20%.
- Olive Oil: Tariffs (currently at 45%) will be removed over five years.
- Pasta & Confectionery: Significant cuts of up to 50% or total elimination.
Note: “Sensitive” sectors such as rice, sugar, and meat remain excluded to protect European agricultural supply chains.
Import: New Opportunities from India
Europe is opening its doors to Indian products with reduced or zero duties on over 99% of tariff lines, with a focus on:
- Steel & Metals: India will be able to export up to 1.6 million tons of steel duty-free.
- Chemicals & Pharmaceuticals: Enhanced integration of supply chains for raw materials and active ingredients.
- Textiles & Footwear: Streamlined customs procedures and reduced barriers for one of India’s legacy export sectors.
Logistics: Simplification and Infrastructure
Beyond tariffs, the agreement introduces procedural innovations to reduce transit times:
- Rules of Origin & Self-Certification: Exporters can now use self-certification to attest preferential origin, significantly reducing paperwork.
- IMEC Corridor (India-Middle East-Europe): The agreement aligns with the IMEC economic corridor vision, positioning Italian ports (such as Trieste and Genoa) as strategic gateways for Indian goods entering Europe.
- Customs Digitalization: Strengthened cooperation on electronic data exchange to slash clearance times at major hubs like Nhava Sheva (Mumbai) and Mundra.
Official Sources
Technical details and tariff schedules are available on the European Commission – DG Trade and the Indian Ministry of Commerce portals.
