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India-EU FTA: Will it help small businesses, protect IPRs and cut red tape?
India-EU FTA: Will it help small businesses, protect intellectual property rights and cut red tape?
India–EU FTA: India and the European Union (EU) on Monday announced the conclusion of the free trade agreement (FTA) at the 16th India–EU Summit.
The deal was finalised during the visit of the EU leaders, led by European Commission President Ursula von der Leyen, to India.
“The conclusion of this FTA positions India and the European Union as trusted partners committed to open markets, predictability, and inclusive growth,” an official statement said.
Can the deal support small enterprises and secure IPRs?
Small Enterprises: The agreement includes a specific section focused on assisting minor firms. They will gain streamlined access to comprehensive data regarding operating and establishing ventures within the EU and India. SME liaison offices will collaborate to simplify commercial exchanges for smaller entities. Lowered duties, the elimination of technical hurdles, increased clarity, and consistent regulatory frameworks will enable organizations to trade internationally in a more affordable, straightforward, and efficient manner.Intellectual property rights: The FTA strengthens the intellectual property safeguards established under TRIPS regarding authorship, branding, industrial designs, proprietary secrets, and botanical types. It upholds the Doha Declaration and acknowledges the value of electronic archives, particularly India's Traditional Knowledge Digital Library (TKDL) initiative. The pact ensures robust oversight and implementation of intellectual property standards, covering creative works, trademarks, and confidential data. Furthermore, it mandates specific protocols and legal avenues to guarantee the rigorous protection of these intellectual assets.
Red tape: Both the EU and India have committed to streamlined workflows, ensuring a clear and stable legislative landscape alongside faster border clearance for shipments. These improvements will collectively make the logistics of global trade more rapid and cost-effective. India and the EU also reached a consensus to intensify partnership regarding logistics security and to improve risk assessment and oversight mechanisms at the European Union's external boundaries.
The India–EU FTA will reduce tariffs and administrative burdens, rendering commercial exchange more accessible, affordable, and swift.
In the statement, Piyush Goyal, Union Minister for Commerce and Industry, said: “The conclusion of the India–European Union Free Trade Agreement represents a defining achievement in India's economic engagement and global outlook. This supports India's approach to secure trusted, mutually beneficial and balanced partnerships.”
The European Union remains a premier commercial ally for India, with two-way exchange of commodities and professional services expanding consistently over the recent period.
During 2024–25, India's two-way commodity exchange with the EU reached ₹11.5 lakh crore ($136.54 billion), featuring exports valued at ₹6.4 lakh crore ($75.85 billion) and arrivals totalling ₹5.1 lakh crore ($60.68 billion). India-EU service-based trade hit ₹7.2 lakh crore ($83.10 billion) in 2024. India and the EU represent the 4th and 2nd biggest global economies, representing 25% of the world's GDP and constituting one-third of international commerce.
Source: LiveMint
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