EU–India Trade Agreement: What the Landmark Deal Means for Ireland and Key Sectors

Dublin: After decades of negotiations, India and the European Union have concluded a landmark bilateral free trade agreement, creating a vast combined market of nearly two billion consumers and accounting for one in every four euros of global economic activity. Ireland’s business community is now assessing the scale of opportunities the deal may unlock.

Indian officials have indicated that while the agreement was signed this week, it may take around six months to come into force, with full implementation potentially taking up to a year or longer. The agreement must still be ratified by the European Parliament and the EU Council. Both sides are expected to move swiftly, particularly as they seek to reduce reliance on the US market.

Major Gains for Irish Whiskey

Irish whiskey producers are expected to be among the biggest beneficiaries. India currently imposes a 150% tariff on Irish whiskey imports. Under the agreement, this will be reduced to 75% initially and further lowered to 40% over the next six to seven years. While beer tariffs will also be reduced, the impact is expected to be more limited.

Pharmaceutical Market Access

The deal will significantly improve access to India’s pharmaceutical market, a key sector for Ireland. Tariffs on EU chemical exports, currently at 22%, will be eliminated, while the existing 11% tariff on pharmaceutical products will be phased out over five to seven years. The aim is to make European medicines available in India at more competitive prices, with increased scope for joint ventures.

Boost for Services

Ireland’s largest economic sector—services—is set to benefit from improved access to Indian markets, particularly in financial and professional services. The agreement also facilitates greater mobility of skilled Indian talent into Europe.

Automotive Sector Opens Up

European car manufacturers stand to gain significant access to the Indian market. Tariffs on a quota of up to 250,000 European-made vehicles will fall from 110% to 10%, while tariffs on car parts will be phased out entirely within ten years. The deal has already impacted markets, with shares in Indian carmaker Mahindra & Mahindra falling following the announcement.

Transformation of the Apparel Trade

Zero tariffs on Indian apparel exports to the EU are expected to give a major boost to India’s garment industry, which competes with Bangladesh, Vietnam and Turkey. Currently holding about 5% of the EU apparel market, India is well placed to expand. The agreement is also expected to benefit Irish fashion brands that design locally and manufacture in Asia by allowing greater supply chain diversification.

Growth in Leather, Footwear and Jewellery

Tariffs of 17% on leather and footwear will be eliminated. The jewellery sector, which has faced reduced access to the US market, is also expected to benefit. The EU will provide duty-free access for gems and jewellery from India, enabling Indian jewellery businesses to expand further across Europe.

Impact on Fisheries

The agreement will increase competition in the fisheries sector, with Indian exporters gaining improved access to the EU market for shrimp, frozen fish and value-added seafood products.

Employment Opportunities in India

The EU–India Free Trade Agreement is expected to generate significant employment growth in India. Duty-free access to European markets is likely to accelerate exports in garments, gems and jewellery, leather and footwear, pharmaceuticals and chemicals, creating large-scale job opportunities. Small and medium enterprises are expected to benefit in particular, while increased European investment in IT, financial and professional services is likely to support higher-paying jobs for skilled workers.

Overall, the EU–India trade agreement is being viewed as a decisive step that will reshape trade flows, strengthen Ireland’s export sectors, and support long-term economic growth and employment on both sides.

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