28, Jan 2026
India–EU FTA Signals Shift Toward Strategic, Long-Term Partnership: Sachin Alug
By:- Sachin Alug, CEO, NLB Services
“The India–EU Free Trade Agreement marks a clear shift toward a more strategic and enduring economic partnership. For Europe, India offers scale, diversified capabilities, and services that support innovation, resilience, and competitiveness. For Indian enterprises, the agreement provides structured access to one of the world’s most regulated and quality-driven markets, encouraging higher standards and value-led growth.
As European organizations deepen delivery footprints in India, the focus is steadily moving beyond offshore hiring toward building resilient Global Capability Centers with stronger governance, compliance, and operating rigor. This evolution is expected to drive sustained demand for specialised capabilities across compliance and trade, ESG and sustainability reporting, data protection and regulatory programmes, digital and engineering delivery, GCC build-outs, and workforce and vendor governance.
The phased reduction of motor vehicle tariffs- from 110% to 40%, with a longer-term aim of 10% within defined quotas- has the potential to reshape automotive supply chains. It lowers entry barriers while incentivising alignment with global quality, safety, and sustainability standards rather than volume-led exports.
Equally important is the focus on people mobility, including simplified student access supported by a dedicated EU office in India. Over time, this will strengthen education-to-employment pathways and the broader talent ecosystem across both regions. The India-EU startup partnership adds further momentum by connecting capital, research, and enterprise demand. Ultimately, the real impact of the agreement will depend on the speed of execution and how effectively policy intent translates into outcomes on the ground.”
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- By Neel Achary
