The planned trade agreement between the EU and India is expected to generate significant welfare gains, according to a study from the Kiel Institute for the World Economy reported by “Handelsblatt” (Friday edition). The research finds that both the EU’s and India’s gross domestic products would stay consistently 0.12 % to 0.13 % higher each year with the deal than without it, translating to roughly €22 billion of additional economic output for the EU and a $4.2 billion boost for India.
Within the framework of the free‑trade agreement, the study estimates that Indian exports to the EU would rise by 41 %, while EU exports to India would grow by 65 %.
In particular, the EU’s chemical sector would benefit the most, with exports projected to increase by 205 %. Other sectors would also see substantial gains: machinery exports would climb 56 %, electronics 153 %, and the plastics industry 169 %.
Commission President Ursula von der Leyen (CDU) is currently in India and aims to finalize negotiations on the trade deal later this week.