New Delhi, Jan 27 (NationPress) The unprecedented preferential access obtained for over 99 percent of Indian exports marks a significant turning point for the Indian industry, according to the Confederation of Indian Industry (CII) on Tuesday.

With the India-EU agreement, exports valued at Rs 6.41 lakh crore ($75 billion) are set to surge, particularly benefiting $33 billion in labour-intensive sectors such as textiles, leather, marine products, and precious stones due to the preferential access outlined in the FTA.

Chandrajit Banerjee, Director General of CII, emphasized that this historic agreement signifies a strategic advancement in India’s global trade relations, enhancing collaboration between two prominent democracies and economies that collectively contribute nearly 25 percent of the world’s GDP.

“This agreement significantly boosts competitiveness in the EU’s high-value market, strengthens the position of Indian manufacturers and service providers within global value chains, and accelerates the flow of investment and technology,” Banerjee stated.

“Key focus sectors include textiles and apparel, leather and footwear, precious stones and jewellery, marine products, engineering goods, automobiles, agriculture and processed foods, as well as IT and IT-enabled services,” he added.

The agreement promises tangible benefits for labour-intensive sectors and MSMEs while establishing a future-ready mobility framework for Indian talent, laying the groundwork for sustainable, inclusive, and globally competitive growth, perfectly aligning with India’s vision of Viksit Bharat by 2047, according to CII.

Balbir Singh Dhillon, Brand Director at Audi India, expressed support for the proposed FTA, highlighting its potential to strengthen economic connections with one of the world’s largest trading blocs.

“This proactive trade approach could enhance the automotive ecosystem, fostering innovation, supply-chain efficiency, and technology collaboration. However, any implications regarding pricing and market dynamics can only be evaluated once the final terms are available and thoroughly scrutinized, including the implementation timeline. Until then, it is premature to draw conclusions on specific commercial or product strategies,” he noted.

Dhillon mentioned that the India-EU FTA will cultivate a stable and predictable environment for European automakers, encouraging investment, innovation, and improved service for customers in India.

The FTA will reduce tariffs on European cars entering India to 10 percent from the current high of 110 percent, with this lower duty applicable under an annual quota of 250,000 vehicles. Presently, India imposes a 70 percent duty on imported passenger cars priced below $40,000, while vehicles exceeding that price face an effective customs duty of 110 percent.

This development unlocks new avenues for European car manufacturers within the Indian market, now the world's third-largest by sales.