India-EU FTA: What’s In It For Indian Startups Earlier this week, India finalised a free trade agreement (FTA) with the European Union (EU). The deal secures duty-free access for 90% of local exports, simplifies talent mobility and enables high-tech collaboration. But what does the agreement mean for Indian startups? The Tariff Math: The agreement offers immediate duty removal on 70% of tariff lines, which covers 90% of India’s $33 Bn exports to the EU across sectors such as textiles, footwear, marine products and gems and jewellery. It also schedules gradual duty reductions over three to ten years for categories like processed foods and certain marine products. D2C’s Sunrise Moment: For homegrown D2C brands, the EU has long been a premium market locked behind compliance complexity, duties and supply chain friction. With tariffs easing, founders believe they can price more competitively without sacrificing margins, particularly in fashion, footwear and electronics. The Services Layer: Beyond physical goods, the FTA also offers ‘predictable’ EU market access for 144 Indian services sub-sectors, including IT/ITeS, finance and research. Experts believe that this could catalyse EU investment into India’s services ecosystem and foster R&D partnerships. Simultaneously, the FTA aims to foster deeper collaboration in areas such… Read MoreInc42 Media
