Nasscom Applauds India–EU FTA Boost for Tech & Services

Nasscom has welcomed the conclusion of the India–EU Free Trade Agreement, calling it a landmark step that significantly strengthens India’s services-led growth story. While the agreement delivers substantial tariff reductions on goods, its most strategic gains lie in services—India’s primary engine of economic expansion—through improved market access and greater regulatory predictability.

Indian technology companies stand to benefit from easier entry into EU markets, with reduced non-tariff barriers streamlining cross-border digital delivery under GATS Mode 1. This is especially critical for IT and digital services, which dominate India–EU bilateral trade.

The FTA introduces modern rules that balance business scalability with privacy, security, and public policy objectives. This alignment is expected to support cloud and AI-led service delivery while remaining consistent with India’s Digital Personal Data Protection (DPDP) Act requirements.

Professional mobility also receives a boost. Improved Mode 4 provisions, coupled with a proposed five-year Social Security Agreement framework across EU member states, will facilitate smoother deployment of Indian tech talent in Europe.

Building on the momentum of the India–EU Trade and Technology Council, the agreement is likely to accelerate European investments in AI, semiconductors, clean technology, and startups, fostering joint ventures and deeper R&D collaboration. Dedicated SME chapters, supported by digital platforms and contact points, are expected to empower smaller technology firms and drive job creation.

At a time of global trade uncertainty, diversified access to EU markets strengthens India’s digital value chain and reduces overdependence on the US and China. Nasscom noted it will review the detailed agreement texts to assess implementation, but affirmed that this FTA positions Indian IT services for accelerated growth across Europe.