India and the European Union have taken a significant step towards strengthening bilateral trade ties, with New Delhi agreeing to cut tariffs on a range of European products including wine, beer and olive oil, according to officials familiar with the negotiations. The move is part of a broader trade agreement aimed at expanding market access, boosting investments and integrating supply chains between the two economies.

Brussels welcomed the development, stating that the agreement would support cross-border investment flows, improve access for European companies to the Indian market, and help deepen supply-chain integration at a time when global trade is being reshaped by geopolitical and economic uncertainties.

For India, the deal is expected to deliver substantial benefits to its export-oriented sectors. Government sources in Delhi said that almost all Indian exports would receive “preferential access” to the European Union, one of the world’s largest consumer markets. Key labour-intensive sectors such as textiles, leather, marine products and handicrafts are set to benefit from a reduction or complete elimination of tariffs, making Indian goods more competitive in Europe.

The agreement is also expected to provide a major boost to high-value export segments including gems and jewellery, which could see improved pricing and stronger demand in EU markets as trade barriers are lowered.

Trade experts say the deal reflects a strategic convergence between India and the EU, both seeking to diversify trade partnerships and reduce dependence on limited markets. While European exporters gain greater access to India’s fast-growing consumer base, Indian manufacturers and exporters stand to benefit from stable, long-term access to advanced European markets.

Officials on both sides indicated that the agreement would not only enhance trade volumes but also encourage technology transfer, joint ventures and long-term industrial collaboration, reinforcing economic ties between India and the EU in the years ahead.