New Delhi, Jan 27, 2026
By boosting bilateral trade and economic ties, the India-EU trade deal supports job creation, MSME growth in tech, and overall confidence for investors in India’s services sector, IT industry’s apex body Nasscom said on Tuesday.
The FTA includes dedicated SME chapters with contact points and digital platforms. Given the geopolitical challenges, the FTA diversifies markets for Indian IT exporters, providing a hedge against global trade uncertainties, said Nasscom
“It strengthens India’s position in global value chains for digital services. We will await the detailed draft text to better understand operationalising of the FTA provision,” it added.
While goods see major tariff cuts, services gains are more about opening markets and rules-based predictability.
Services being dominant and faster growing part of both economies, the gains would be in the form of better EU market access for Indian tech. This could lower non-tariff barriers and ease cross border delivery, said Nasscom.
“Digital trade rules to support business while protecting privacy, security and public policy. Indian IT firms stand to gain from greater opportunities in Europe, including easier cross-border provision of services (Mode 1 under GATS) and potentially improved mobility for professionals (though Mode 4),” it explained.
India and EU have agreed on constructive framework to enable Social Security Agreements in 5 years with all the EU Member States.
The agreement fosters deeper EU-India ties in technology, innovation, and digital areas (building on the India-EU Trade and Technology Council).
This could lead to more EU investment in India’s IT ecosystem, joint ventures, R&D in AI, semiconductors, clean tech, and startups. Indian IT companies could benefit from technology transfer, co-creation, and expanded partnerships, said Nasscom.
The trade agreement opens unprecedented market access for Indian exporters across goods and services, particularly empowering labour-intensive sectors, MSMEs, women entrepreneurs, artisans, and youth—core focus areas of the Government’s inclusive growth agenda.(Agency)
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