European farmers and agri-food producers stand to be among the principal beneficiaries of the India–European Union free trade agreement (FTA) concluded on Tuesday, as the deal dismantles some of the highest agricultural tariffs in the Indian market while tightly shielding the EU’s own sensitive farm sectors, according to official releases from Brussels and New Delhi.
The agreement significantly improves access for EU agri-food exports to India, where average farm tariffs often exceed 36%, a long-standing barrier for European producers. The European Commission estimates the FTA could save EU exporters up to €4 billion annually in duties once fully implemented, strengthening the competitiveness of European food products in one of the world’s fastest-growing consumer markets.
Under the pact, India will reduce or eliminate tariffs on a broad basket of EU agricultural and processed food exports. Duties on olive oil, margarine and other vegetable oils — currently as high as 45% — will be cut to zero. Tariffs of up to 55% on fruit juices and non-alcoholic beer will also be eliminated, while sheep and lamb meat exports from the EU will gain full duty-free access from a current tariff of 33%.
Processed food categories such as bread, biscuits, pasta, chocolate and pet food, which face tariffs of up to 50%, will also enter India at zero duty. Alcoholic beverages, a key European interest, will see calibrated liberalisation: wine tariffs of 150% will be reduced to 20% for premium wines and 30% for mid-range segments, while duties on spirits will fall to 40% from levels as high as 150%.
EU officials say the concessions could substantially expand Europe’s agri-food footprint in India, where EU exports currently lag behind those to markets such as China or the United States. EU agri-food exports to India already support around 800,000 jobs across the bloc, and the Commission expects that number to rise as trade volumes grow.
EU draws firm red lines on sensitive agriculture
At the same time, the EU has clearly ring-fenced its own agricultural sensitivities. No tariff concessions will be granted on sugar and ethanol, rice and soft wheat, beef and poultry, milk powders, bananas and honey. Imports of table grapes and cucumbers — areas where Indian exporters are competitive — will be subject to tightly calibrated tariff-rate quotas, limiting volumes entering the EU market.
The EU has also underlined that its high sanitary and phytosanitary (SPS) standards will remain fully intact. Under the SPS chapter of the FTA, the EU’s stringent rules on animal and plant health, as well as food safety, will continue to apply with no exceptions, European officials said. Enhanced cooperation mechanisms are intended to improve transparency and information-sharing, but without diluting regulatory requirements.
Trade analysts say these safeguards were critical in securing political buy-in from European farming lobbies, which have been wary of import competition amid already volatile global food markets.
India’s gains: targeted access, guarded core
For India, the agricultural gains are more selective but strategically important. The EU will offer preferential market access for a range of Indian products, including tea, coffee, spices, table grapes, gherkins and cucumbers, dried onions, fresh fruits and vegetables, and certain processed foods, according to India’s commerce ministry.
Officials argue that lower tariffs and predictable rules will help Indian farmers and agri-exporters move up the value chain, tapping Europe’s premium market for traceable and sustainably produced food. Although agriculture forms a relatively small share of overall India–EU merchandise trade — valued at about $136.5 billion in 2024–25 — policymakers see substantial headroom for growth in high-value niches.
Crucially, India has protected its most sensitive farm sectors. Dairy, cereals, poultry, soymeal and several fruits and vegetables have been excluded from tariff liberalisation, reflecting domestic concerns over rural livelihoods and food security. India is the world’s largest milk producer, with millions of smallholders dependent on the sector, making dairy a political red line in trade negotiations.
Standards and structure
The agreement also includes strict rules of origin to ensure that only goods substantially produced or processed in India or the EU benefit from tariff preferences, reducing the risk of third-country trans-shipment. Provisions on SPS and technical barriers aim to cut delays and compliance costs without weakening regulatory oversight.
The FTA must still undergo legal scrubbing and ratification by the European Parliament and India’s authorities before entering into force. Once implemented, officials on both sides see it reshaping agri-trade flows — giving European farmers unprecedented access to the Indian market, while offering Indian agriculture carefully circumscribed entry into one of the world’s most regulated food markets.