‘Mother of All Deals’: India-EU FTA’s Success Hinges on Non-Tariff Barriers

KEY TAKEAWAYS:

Industry dubs the India-EU pact the “mother of all deals” for exporters.
MedTech leaders seek regulatory alignment and safeguards against predatory imports.
MSMEs warn compliance costs and EU standards will determine real benefits.

The “mother of all deals” as industry leaders describe the India-EU Free Trade Agreement has generated strong optimism across sectors. However, business bodies caution that the agreement’s true impact will depend on how effectively non-tariff barriers, regulatory hurdles, and compliance costs are managed once the pact is implemented.

MedTech Industry Calls for Level Playing Field

Rajiv Nath, Forum Coordinator at the Association of Indian Medical Device Industry (AiMeD), stressed that the agreement must ensure a fair regulatory environment for Indian manufacturers.

He warned against predatory imports routed through third countries and called for a Mutual Recognition Agreement (MRA) anchored in common ISO standards. Such alignment, he said, would promote quality, transparency, and patient safety while enabling high-value collaboration with European firms.

Nath added that this could accelerate India’s ambition to emerge as a top-five global MedTech hub.

MSMEs Eye €15 Trillion EU Market Opportunity

K.E. Raghunathan, National Chairman of the Association of Indian Entrepreneurs (AIE), described the FTA as a vital opening for MSMEs and labour-intensive sectors.

With tariffs likely eliminated or sharply reduced on over 99% of Indian export value, products such as textiles, gems and jewellery, and engineering goods could gain unprecedented access to the EU’s €15-trillion-plus market.

He said the agreement offers exporters a chance to diversify markets after facing steep US tariffs that had disrupted supply chains and hurt competitiveness.

Non-Tariff Barriers and Compliance Costs: The Real Test

Despite tariff relief, Raghunathan cautioned that EU regulatory standards, certifications, and documentation requirements could pose serious challenges, especially for small exporters.

He emphasized that unless compliance pathways are simplified and costs contained, MSMEs may struggle to fully benefit from the pact.

Industry representatives now await the detailed provisions and follow-up cooperation talks, noting that the success of the “mother of all deals” will ultimately be measured by how easy it becomes for Indian businesses to access the European market in practice — not just on paper.