New Delhi [India], January 27 (ANI): Indian industry chambers have welcomed the announcement of the India-European Union Free Trade Agreement (FTA), terming it a 'strategic breakthrough' that will significantly deepen trade, investment, employment, and competitiveness across key sectors.

In a statement, Chandrajit Banerjee, Director General of the Confederation of Indian Industry (CII), said CII applauded the India-EU FTA announced today.

'This landmark agreement represents a strategic breakthrough in India's global trade engagement and significantly deepens the partnership between two major democracies and economies that together account for nearly 25% of global GDP.'

Highlighting the scale of market access secured under the agreement, Banerjee said the unprecedented preferential access secured for over 99% of Indian exports is a game-changer for the Indian industry.

'It decisively improves competitiveness in the EU's high-value market, anchors Indian manufacturers and service providers deeper into global value chains, and accelerates investment, technology inflows, and scale,' Banerjee said.

He added that key sectors of focus include textiles and apparel, leather and footwear, gems and jewellery, marine products, engineering goods, automobiles, agriculture and processed foods, IT and IT-enabled services, and other business and professional services.

Echoing similar sentiments, Ranjeet Mehta, CEO and Secretary General, PHDCCI, said the agreement marks a major milestone for the Indian industry.

'The India-EU deal is a pivotal economic milestone, opening access for Indian industries to a nearly $23-trillion EU market across 27 countries,' Mehta said.

He noted that 'MSMEs stand to be major beneficiaries, especially sectors like textiles, apparel, and gems & jewellery, which have faced pressure from recent US tariffs.'

According to Mehta, 'The agreement is expected to boost employment and manufacturing demand, with industry surveys indicating stronger hiring intentions in coming quarters.'

He further said, 'Deeper integration into global value chains, particularly in manufacturing and logistics, will enhance competitiveness and efficiency for Indian enterprises.' He added that 'Technology collaboration and increased EU investments will support long-term, sustainable growth, making the deal a win-win for both India and the EU.'

Anant Goenka, President, Federation of Indian Chambers of Commerce and Industry (FICCI), congratulated the Government of India for advancing the agreement.

'Congratulations to the Government of India for advancing an agreement of strategic scale and long-term significance under the leadership of Hon'ble Prime Minister Shri Narendra Modi. The European Union represents the most expansive and high-potential market covered under India's recent FTA engagements, opening new avenues for deeper economic collaboration,' Goenka said.

He added, 'The India-EU FTA is poised to unlock substantial untapped trade and investment opportunities, enabling deeper market access, stronger value-chain integration, and enhanced export competitiveness across manufacturing and high-value sectors.'

The India-EU Free Trade Agreement was concluded today after long negotiations and is expected to significantly enhance bilateral trade and investment ties, strengthen supply chains, and deepen economic cooperation between India and the European Union.

The documents on the FTA conclusion were exchanged between EU Trade Commissioner Maros Sefcovic and Union Commerce Minister Piyush Goyal. This announcement marks a historic milestone in India-EU economic relations and trade engagement with key global partners.

According to the joint statement, this historic deal is a milestone in the India-EU Strategic Partnership that will significantly enhance bilateral trade and investment ties, drive shared prosperity, strengthen resilient and diversified supply chains, and support sustainable and inclusive growth.

The FTA comes after intense negotiations since the re-launch of negotiations in 2022.

The European Union is one of India's largest trading partners, with bilateral trade in goods and services growing steadily over the years. In 2024-25, India's bilateral trade in goods with the EU stood at Rs 11.5 Lakh Crore (USD 136.54 billion) with exports worth Rs 6.4 Lakh Crore (USD 75.85 billion) and imports amounting to Rs 5.1 Lakh Crore (USD 60.68 billion). India-EU trade in services reached Rs 7.2 Lakh Crore (USD 83.10 billion) in 2024. (ANI)