Skip to content
Free updates Login
SSCBankingUPSC & State PSC

EU Firms in India: Trade Hurdles and Investment Outlook

6 March 20251 min read
ECONOMYEU Firms in India:Trade Hurdles andInvestmentOutlook6 March 2025safalsetu.com

Why in the news

European businesses in India want smoother trade procedures but remain upbeat about the market and the proposed FTA.

Hurdles flagged

  • Quality Control Orders (QCOs) and customs procedures are too complex.
  • Labelling, testing and import processes need streamlining; digital flows should be free of data localisation limits.
  • Visa and work-permit complexity hurts talent mobility; weak IP enforcement risks counterfeits and data.

Survey findings

IndicatorShare of firms
Positive FTA impact expected92%
Will invest more within two years72%
Invest above pre-2025 levels76%
India as expanding sales market80%
India as emerging production hub61%

Why India

  • Political stability (66%), geopolitical position (60%), skilled labour (60%), easing business climate (59%).

Significance

  • The EU supplied 12.2% of India’s trade in 2023; the FTA should lift goods and services trade once barriers ease.

Exam angle

  • Related terms: QCO, data localisation, non-tariff barrier.

Test yourself

1. What share of European firms expected a positive impact from the proposed EU-India FTA, per the survey notes?

92% of European businesses foresee a positive effect from the FTA.

2. Which instruments did EU companies say India should simplify or remove to ease imports?

EU firms called QCOs and complex customs procedures overly complicated.

3. What was the EU's share in India's total trade in 2023, as cited in these notes?

The EU was India's primary trading partner with a 12.2% share.

This topic is part of Daily Current Affairs 6 March 2025 (15 topics).

All topics of the dayDay quizMarch 2025

Read more