India must forge EU buyer ties to maximize FTA gains, FICCI warns

Indian firms must look beyond tariff advantages and adopt a comprehensive strategy to capitalise on the free trade agreement with the European Union, according to industry chamber FICCI.

While the pact, finalised in January, opens significant opportunities for Indian micro, small and medium enterprises to expand their European footprint, tariff concessions alone will not translate into higher exports, FICCI Secretary General Anant Swarup said. The real challenge lies in converting improved market access into sustained market penetration, he added.

"Indian companies will need to adopt a more strategic approach to the European market," Swarup told PTI. "This includes identifying products where tariff advantages are significant, building relationships with European buyers, upgrading product quality, and integrating into European supply chains."

The comments come as Commerce and Industry Minister Piyush Goyal visits Europe to promote bilateral trade ties. Industry observers say that while the tariff reductions under the agreement provide a foundation for increased trade, success will depend on Indian exporters' ability to meet European quality standards, establish distribution networks, and understand buyer preferences in the bloc.