Guwahati, Jan 27: The conclusion of the historic India–European Union Free Trade Agreement (India–EU FTA) is set to open significant new export avenues for Assam’s tea, spices and traditional handicrafts, with Union Minister Sarbananda Sonowal calling it a “game-changer” for the state’s local economy.

Reacting to the announcement, Sonowal said the landmark trade pact would provide Assam’s indigenous products access to a vast European market, boosting exports of Assam tea from hubs such as Dibrugarh and Jorhat, promoting spices from Upper Assam, and empowering bamboo artisans and handicraft makers from districts like Barpeta and Nalbari with new global opportunities.

The India–EU FTA was jointly announced on Tuesday by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen at the 16th India–EU Summit, held during the visit of European leaders to India. The agreement marks a major milestone in India–EU economic relations and positions both sides as trusted partners committed to open markets, predictability and inclusive growth.

Negotiations for the agreement were re-launched in 2022, and the announcement marks the culmination of years of sustained dialogue and political engagement between India and the EU to establish a balanced, modern and rules-based trade partnership.

The European Union is one of India’s largest trading partners. In 2024–25, bilateral trade in goods between India and the EU stood at ₹11.5 lakh crore (USD 136.54 billion), with Indian exports valued at ₹6.4 lakh crore (USD 75.85 billion) and imports at ₹5.1 lakh crore (USD 60.68 billion).

Trade in services reached ₹7.2 lakh crore (USD 83.10 billion) during the same period. Together, India and the EU represent the fourth- and second-largest economies globally, accounting for about 25% of global GDP and nearly one-third of global trade.

Union Commerce and Industry Minister Piyush Goyal described the agreement as one of India’s most consequential FTAs, stating that it secures unprecedented market access for over 99% of Indian exports by trade value to the EU.

He said the agreement goes beyond a conventional trade deal, unlocking high-value commitments in services, a comprehensive mobility framework for skilled professionals, and strong support for the ‘Make in India’ initiative.

The FTA covers trade in goods and services, customs and trade facilitation, rules of origin and trade remedies, while also addressing emerging areas such as digital trade and small and medium enterprises.

It is expected to give a decisive boost to labour-intensive sectors including textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles, with tariffs of up to 10% on nearly USD 33 billion worth of exports reduced to zero upon entry into force.

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