From a broader geopolitical perspective, the alliance moves the relationship beyond mere transactional exchange, Edyta Kurek Senior Vice President & Head of India and Indonesia, Oriflame
The recent signing of the India-EU Free Trade Agreement is a watershed moment in the international business arena. It holds significant importance not just for diplomats and trade experts but equally for players in the consumer goods sector. This free trade agreement represents a major change in one of the world’s key economic partnerships and its impact will be felt across boardrooms and retail shelves alike.
From a broader geopolitical perspective, the alliance moves the relationship beyond mere transactional exchange. Furthermore, the parallel agreements on security, defence, and mobility forge a deeper, more resilient partnership built on shared strategic interests, clearly positioning both as aligned, rules-based partners in an increasingly multipolar world. This stability is essential for businesses as long-term investments in marketing, manufacturing, and supply chains do well in predictable conditions. Especially considering global trade fragmentation, the deal signals that significant economic cooperation is still possible.
For consumer brands specifically, the direct impact is twofold: market access and operational fluidity.
The removal of tariffs, more specifically the EU’s elimination of duties on 99.5 per cent of Indian imports, is a boon for the competitive landscape. Sector-specific gains, such as immediate zero-duty access for Indian textiles, plastics, furniture, and marine products, will increase the diversity and cost-competitiveness of goods flowing into Europe. For European brands, the phased reduction of Indian tariffs opens a more accessible path to a consumer base of unparalleled scale and growth potential. It allows for a reevaluation of pricing strategies and market penetration models. At the same time, it brings a new wave of Indian products and brands into European markets, raising standards for innovation and value.
Perhaps even more significant are the indirect benefits. The focus on regulatory dialogue and mutual recognition agreements within the partnership can help tackle the significant non-tariff barriers. Simplified processes for standards, safety, and sustainability certifications offer an important benefit in this deal, making it easier to get products to market. Additionally, the improved mobility framework, such as easier pathways for skilled workers, students, and researchers, supports the exchange of expertise, consumer insights, and management talent. This allows brands to operate with better local understanding and agility.
The agreement also emphasises the importance of diversifying the supply chain. By boosting India’s position as an alternative manufacturing center, it encourages brands to reconsider their sourcing and production locations. This helps reduce dependency on any particular geography, which as a corollary, aligns well with the industry’s overall focus towards resilience.
This is more than just a trade agreement, rather a geopolitical and economic statement. Companies will no longer view Europe as a premium market and India as a factory floor. India will build. Europe is going to design. Both will compete, grow, and sell. In the upcoming decade, it concerns who will be in charge of global value chains. The agreement demonstrates how trade policy can actively influence where businesses create value and how customers perceive it, and it reshapes ambition, investment, and power in the global business arena.
