The India–EU Free Trade Agreement concluded yesterday is expected to bring significant benefits to the Indian market. In this context, the PhD Chamber of Commerce and Industry (PHDCCI) has stated to the media that micro, small and medium enterprises (MSMEs) will be the biggest beneficiaries of this agreement. Speaking on the occasion, PHDCCI said that the trade agreement with the European Union will open up a massive $23 trillion market for Indian MSMEs. The agreement will provide Indian industries access to a vast $23 trillion economy, which is expected to greatly benefit the Indian economy, especially small-scale industries.
This agreement, connecting India with 27 countries, will be highly beneficial for duty-free exports from India. While discussing its impact, PHDCCI stated that the recently concluded India–European Union Free Trade Agreement (FTA) will create significant business opportunities for micro, small and medium enterprises (MSMEs), leading to a major transformation in the country’s economic landscape. Small entrepreneurs, in particular, are expected to benefit greatly from increased export opportunities.
PHDCCI CEO and Secretary General Ranjit Mehta stated, “The agreement will provide Indian industries access to a vast $23 trillion economy.” He expressed confidence that this agreement will serve as a crucial support pillar for small businesses. Dr. Mehta further said that the India–European Union agreement marks an important economic milestone. It opens pathways for Indian industries to access a market worth approximately $23 trillion. The European Union consists of around 27 countries and he believes this will create even greater business opportunities for Indian MSMEs, especially those most affected by U.S. tariffs.
He added that the industry expects large-scale technological integration and increased investment in the Indian economy. He described the agreement as a win-win situation for both India and the European Union. Under this new framework, key labour-intensive sectors are poised to lead growth. The agreement focuses on providing relief and expansion to traditional export categories that have recently faced adverse global trade conditions.
Sectors such as textiles, ready-made garments, gems and jewellery are expected to benefit significantly from this agreement. Mehta also noted that it will open doors to increased employment opportunities within the country. The combined population of India and the European Union exceeds 2 billion, accounting for approximately 25% of the global economy. He further emphasized that the agreement also promotes deeper structural integration between the two regions, particularly in technology-driven sectors.
Mehta explained that this partnership is strengthening integration within global value chains, especially in areas such as logistics and manufacturing. According to PHDCCI’s analysis, demand for goods and services has remained strong as markets expand. The industry body expects this positive momentum to continue in the coming months due to the favorable trade environment created by the new agreement.
“Our analysis indicates strong demand for goods and services and we expect even stronger growth in the upcoming quarters,” Mehta said. He added that micro, small and medium enterprises (MSMEs) are enthusiastic about the market opportunities, particularly in light of the India–European Union trade agreement. Ultimately, he concluded that this Free Trade Agreement will benefit all small and medium enterprises and entrepreneurs across the country.
