The conclusion of the India–European Union Free Trade Agreement (India–EU FTA) marks a historic milestone in India’s global economic engagement and signals the emergence of a new era of trusted, forward-looking trade partnerships. It is not only a milestone in relations between two major economic powers, but also a signal of India’s growing role as a trusted, forward-looking trade partner – a development that carries important implications for Namibia and the wider southern African region.
Announced at the 16th India-EU Summit by prime minister of India, Narendra Modi, and European Commission president, Ursula von der Leyen, the agreement brings together two of the world’s largest economic powers, India, now the fourth-largest economy, and the European Union, the second-largest. Together, these partners account for roughly a quarter of global GDP and a significant share of world trade. Their closer integration is poised to create unprecedented opportunities for growth, innovation, and investment.
The agreement provides unprecedented market access, with over 99% of Indian exports by value enjoying preferential entry into the EU market. This could significantly expand Indian exports, including USD 75 billion worth of goods already traded. Nearly USD 33 billion in labour-intensive exports, including textiles, leather, footwear, marine products, gems, jewellery, and handicrafts, will benefit from the removal of tariffs of up to 10%.
The FTA benefits extend beyond trade, aiming to create jobs and opportunities for MSMEs, women, artisans, youth, and professionals. By boosting India’s integration into global value chains, it fosters inclusive growth and broad economic participation.
The agreement also includes a carefully calibrated approach to automobile trade, providing reciprocal market access while supporting India’s ‘Make in India’ initiative.
European manufacturers will gain structured access to India’s higher price segments, while Indian-made vehicles will have improved opportunities to enter the EU.
This balanced approach is expected to promote investment, technology transfer, and future export potential.
India’s agricultural and processed food sectors are poised for growth, with products such as tea, coffee, spices, fruits, vegetables, and processed foods becoming more competitive in the EU, benefiting farmers and rural enterprises.
India has also protected sensitive sectors like dairy and agriculture to prioritise domestic needs. The FTA emphasise services, a rapidly growing sector, ensuring market access for Indian providers in 144 EU subsectors, including IT, professional services, education, finance, tourism, and construction. Conversely, the EU gains access to 102 Indian subsectors, encouraging exchange of expertise, technology, and investment.
Complementing these provisions is a mobility framework that enables movement of skilled professionals. The agreement offers predictable pathways for business visitors, transferees, service suppliers, and professionals. It also covers student mobility, post-study options, and social security talks. These measures aim to expand opportunities for Indian talent and boost knowledge exchange and innovation.
The FTA tackles modern trade issues by reducing non-tariff barriers, improving customs, and increasing transparency. It includes provisions on the EU’s Carbon Border Adjustment Mechanism (CBAM) for engagement, cooperation, and greener processes. The agreement also encourages collaboration in digital trade, AI, clean tech, and semi-conductors.
Strong intellectual property protections, in line with global rules, are included, alongside recognition of India’s Traditional Knowledge Digital Library. Together, these elements create a modern, balanced, and rules-based trade framework that can adapt to future technological and regulatory changes.
This agreement shows India’s ability to negotiate balanced, modern trade partnerships and its willingness to engage with partners worldwide, including Africa. Discussions with the Southern African Customs Union (SACU), which includes Botswana, Eswatini, Lesotho, Namibia, and South Africa, are significant.
Namibia, as SACU coordinator, is key to shaping future trade with India. Several meetings this year have finalised the Terms of Reference for a proposed Preferential Trade Agreement (PTA), laying the groundwork for negotiations to expand trade, improve market access, and boost economic cooperation.Studies indicate that once the PTA concludes, bilateral trade between India and SACU could increase by 40-60%.
Such growth would represent a substantial expansion of commercial ties and open new opportunities for businesses on both sides.Namibia can benefit significantly as India is a large and expanding market for minerals, energy, and agricultural goods, areas where Namibia excels. A PTA could boost Namibian exports’ competitiveness in India and promote value addition and industrial growth.
At the same time, Namibian (and other SACU member states’) businesses and consumers would gain better access to affordable, high-quality Indian products, including pharmaceuticals, machinery, vehicles, textiles, and technology.
India’s strengths in information technology, digital services, education, and healthcare also create opportunities for deeper cooperation in skills development and services trade – areas that align closely with Namibia’s development priorities, particularly youth employment and SME growth.
Similar to the India–EU FTA, India’s trade partnerships with SACU go beyond tariffs, aiming to build long-term, development-focused relationships that boost industrialisation, strengthen supply chains, foster innovation, and create jobs.
Trade between India and Africa has grown steadily over the past two decades, yet it remains well below its full potential.
The proposed India–SACU PTA is an important step toward unlocking that potential through a partnership rooted in mutual benefit and South–South cooperation.
As negotiations advance, India aims to work with Namibia and SACU partners to turn shared goals into results, boosting trade, supporting development, and strengthening economic ties between southern Africa and a rapidly growing economy.
*Rahul Shrivastava is the High Commissioner of India to Namibia.