Cyprus chamber points to major export gains from EU-India trade deal

The Cyprus Chamber of Commerce and Industry (Keve) has underlined the substantial export potential arising from the newly concluded free trade agreement between the European Union and India, noting that the arrangement is expected to open important new pathways for European exporters, including businesses in Cyprus.

According to the chamber, the agreement, finalised in January 2026 and anticipated to take effect in the coming years, will make India’s vast market of around 1.45 billion consumers more accessible to European enterprises. The organisation said the deal is poised to create “significant opportunities for EU exporters, including businesses in the agri-food and industrial sectors”.

India was characterised as one of the world’s largest markets, with the agreement granting preferential entry conditions for European goods. The chamber explained that tariffs affecting more than 96 per cent of EU exports to India will either be cut significantly or abolished altogether, thereby improving access to one of the most important global markets.

It added that European exporters could collectively save up to €4 billion each year in tariff costs, a development expected to enhance their competitive position under the new trade framework.

Keve highlighted that the benefits will extend to a wide range of businesses, including small and medium-sized enterprises as well as agri-food producers. Reduced tariffs will apply to numerous products, including olive oil, processed food items, wines and spirits.

The chamber also stressed that strict European health and food safety regulations will remain fully applicable, ensuring that consumer protection standards are maintained even as trade becomes more liberalised.

In addition, the agreement establishes provisions that allow for targeted intervention if market imbalances arise, creating safeguard mechanisms to address any negative consequences that may occur.

Beyond goods, the framework is expected to improve access in the services sector, reinforce intellectual property protections and streamline customs processes, making cross-border trade easier and more efficient.

Keve noted that the agreement unlocks fresh opportunities across a broad spectrum of industries, including agri-food production, machinery manufacturing, medical equipment, chemicals and other industrial sectors.

It further stated that “the stability offered by the deal, combined with the reduction of trade barriers, can significantly improve the access of small and medium-sized enterprises to new markets”.

The chamber also encouraged businesses to take proactive steps in evaluating the advantages of the agreement, noting that “Local small and medium-sized enterprises that are active in exports or seeking to expand their export activity, particularly in the agri-food and manufacturing sectors, were encouraged to examine how the new agreement can enhance their competitiveness in the Indian market,” the chamber said.

Concluding its remarks, Keve called on companies to carefully consider how the new trading conditions could support their future expansion, emphasising that preferential access to one of the world’s largest economies could play a key role in strengthening their long-term growth strategies.

By fLEXI tEAM