India-EU Trade Deal: Piyush Goyal Outlines Vision for 8 Million Jobs and $10 Trillion Economy

Union Minister for Commerce and Industry Piyush Goyal has characterized the ongoing trade negotiations and recent agreements with the European Union (EU) and the European Free Trade Association (EFTA) as a defining moment in India's economic history. Speaking at a series of industry events, the Minister emphasized that India is now negotiating from a position of strength, moving away from the defensive stances of previous decades. The strategic focus remains on creating massive employment opportunities while safeguarding sensitive domestic sectors like agriculture.

The Minister highlighted that the trade agreement with the EU is expected to provide zero-duty access for Indian textiles. This shift is projected to create between six to eight million jobs in the textile sector alone. Currently, Indian textile exports face duties ranging from 9% to 12% in European markets, making them less competitive compared to other nations. Once the deal becomes effective, this differentiation will disappear, allowing Indian manufacturers to grab a significantly larger market share.

Strategic Safeguards for Agriculture and Sensitive Sectors

A critical component of India's trade diplomacy involves protecting the interests of its vast farming community. Minister Goyal confirmed that sensitive agricultural products, including rice, sugar, wheat, soya, corn, and dairy, have been kept out of the liberalization scope. This ensures that domestic farmers are not adversely affected by cheaper imports while the country pursues aggressive growth in other industrial and service sectors. This balanced approach is intended to make the trade deal a win-win for both the 27 European Union nations and India.

Beyond textiles, the agreement opens doors for high-tech products and massive foreign direct investment. India expects to see a surge in the manufacturing of engineering products, auto components, and automobiles. Furthermore, the deal is expected to lower the cost of critical healthcare products, such as cancer drugs, for Indian consumers. By becoming a manufacturing hub, India aims to serve not only its domestic market of 1.4 billion people but also regions like Africa, Latin America, and other Asian countries.

Export Performance and Resilience Amid Global Volatility

Despite global economic uncertainties and a 50% tariff imposed by the United States on certain Indian goods, the country's export trajectory remains positive. In the first six months of the current fiscal year, exports grew by approximately 6% to 7%. Official data for September 2025 showed merchandise exports at $16.38 billion, a 6.75% increase on a year-on-year basis. The Minister expressed confidence that total exports in FY26 will surpass the $120 billion achieved in FY25.

The Role of GST Rationalization in Boosting Trade

The government has linked recent Goods and Services Tax (GST) reforms directly to export competitiveness. Rate rationalization is expected to ease liquidity constraints for Micro, Small, and Medium Enterprises (MSMEs) and improve supply chain efficiency. By reducing input costs and ensuring faster tax refunds, the government aims to empower domestic producers to capture a larger share of both the Indian and global markets. Industry bodies have welcomed these measures as a decisive step toward an Atmanirbhar Bharat.

Digital Infrastructure and the Trade Connect ePlatform

To support the ambitious target of $1 trillion in merchandise exports and $1 trillion in services exports by 2030, the Ministry of Commerce has scaled up digital trade infrastructure. The Trade Connect ePlatform, launched in September 2024, has already seen over 62 lakh visits. This platform integrates services from Indian Missions, the DGFT, and Export Promotion Councils, providing MSMEs with market intelligence and digital Certificates of Origin. The Jan Sunwai video-conferencing module has also reported a 96% grievance resolution rate, reflecting a commitment to ease of doing business.

Market Diversification and New Opportunities

India is actively diversifying its export destinations to mitigate risks from traditional markets. Efforts are underway to expand seafood exports to the United Arab Emirates (UAE) and poultry products to Singapore. The Minister noted that the use of the Rupee for trade with the UAE is a significant step in reducing currency conversion costs, which typically range from 5% to 6% for MSMEs. These strategic partnerships are essential for India's goal of becoming a $10-35 trillion economy by 2047.

Analysis of the Swadeshi Movement and Economic Vision

The Minister also emphasized the cultural and economic importance of the Swadeshi movement, drawing parallels between Mahatma Gandhi's vision and Prime Minister Modi's policies. He urged citizens to commit to buying goods made on Indian soil, regardless of the ownership of the manufacturing company, as long as it generates local jobs and economic activity. This internal demand, coupled with aggressive global trade diplomacy, forms the backbone of India's current economic strategy.

Market Impact and Future Outlook

The focus on Free Trade Agreements (FTAs) with the UK, EU, and Canada signals a long-term commitment to global integration. While the trade deficit widened to $16.61 billion in September 2025 due to higher imports, the government views this as a sign of a growing domestic economy that requires capital goods and raw materials for manufacturing. The resilience of the services sector and the steady growth in merchandise exports suggest that India is well-positioned to navigate the complexities of international trade wars and tariff fluctuations.

Conclusion

India's trade strategy is currently characterized by a mix of aggressive market expansion and calculated domestic protection. The successful conclusion of the India-EFTA agreement and the ongoing negotiations with the EU represent a shift toward high-value trade partnerships. As the nation moves toward its 2047 goals, the focus will remain on enhancing domestic competitiveness, leveraging digital infrastructure, and fostering a spirit of collaboration between the Centre and States to drive export-led growth.