India Calibrates EU Trade Deal to Boost Key Imports While Shielding Local Industry
Piyush Goyal explains smart tariff sequencing in India-EU FTA to support manufacturing goals.
India has strategically structured its recently concluded free trade agreement with the European Union to fast-track tariff cuts on select critical imports while providing adequate protection and transition time for domestic industries. Commerce and Industry Minister Piyush Goyal highlighted this calibrated approach in an exclusive interview with NDTV, emphasising that the deal avoids a blanket market opening.
Rather than applying uniform liberalisation across all sectors, India front-loaded duty reductions for goods that directly support national priorities, particularly in healthcare. Certain medical devices and other essential items will see quicker access to lower or zero tariffs, enabling faster availability and cost benefits for consumers and the healthcare sector. In contrast, areas where Indian manufacturers need more time to build competitiveness and scale have been granted longer transition periods before facing full competition.
Goyal described the strategy as “smart calibration,” tailored to sectoral readiness. This sequencing ensures domestic industry is not suddenly exposed to overwhelming pressure from European imports, while still allowing immediate gains in high-priority segments. The minister stressed that the agreement forms part of India’s broader industrial policy, using trade pacts to strengthen manufacturing, secure supply chains, and align imports with self-reliance objectives.
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The comments provide deeper insight into New Delhi’s negotiating stance following the conclusion of long-drawn FTA talks with the EU. Official announcements have centred on expanded trade volumes and wide tariff coverage, but Goyal’s remarks reveal the deliberate design behind the tariff schedule. The approach signals how India plans to handle future trade negotiations—prioritising balanced integration that supports rather than undermines domestic production capacity.
By embedding such safeguards and phased openings, the India-EU deal aims to deliver tangible benefits to consumers and key sectors without compromising long-term industrial growth. The minister reiterated India’s commitment to deepening global market ties while continuing to build robust domestic capabilities.
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