EU–India trade agreement could boost EU exports

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A future free trade agreement between the EU and India could create major opportunities for European exports. Gains are expected across a broad range of sectors, including food products, manufacturing, and intermediate goods such as metals, rubber, and plastics.

In a new simulation, the National Board of Trade Sweden estimates that EU exports to India could increase by 17–21 per cent compared with a baseline without the agreement. Trade in services is also expected to grow, while businesses in the EU and India could become more integrated through global value chains. For Sweden, one of the largest effects is found in the motor vehicle sector, where exports to India could increase by nearly 90 per cent within five to seven years.

“The results show that the agreement would not only increase trade. It could also strengthen production linkages between European and Indian companies through global value chains,” says Lovi Nordgren, Trade Policy Adviser at the National Board of Trade Sweden.

Read the full interview and download the analysis
Modelling the potential trade effects of the EU–India Free Trade Agreement