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Embassy of Sweden New Delhi, India

Local time 4:11 AM

What does the agreement mean for small and medium-sized enterprises (SMEs)?

The EU–India Free Trade Agreement is expected to be of particular benefit to small and medium-sized enterprises (SMEs), which are often disproportionately affected by tariffs, administrative burdens, and regulatory complexity when operating internationally. By reducing tariffs on a large share of EU exports to India and improving market access, the agreement aims to lower trade costs and make it easier for SMEs to enter or expand their presence in the Indian market.

There will also be a dedicated chapter in the agreement that will further help SMEs take full advantage of the new export opportunities. For example, this chapter will put in place dedicated contact points on both sides to provide SMEs with relevant information on the FTA and help them with any specific issue they would face when trying to use the FTA's provisions.  

Beyond tariff reductions, the agreement seeks to address non-tariff barriers by promoting greater regulatory transparency, more predictable rules, and simplified procedures for trade in goods and services.

Last updated 05 Feb 2026, 4.21 PM