The $136 Billion Breakthrough: How the India-EU FTA Just Rewrote the Rulebook for Indian MSMEs
Published 2025-01-15.
The India-EU FTA negotiations are reshaping trade access for Indian exporters. Here's what MSMEs need to understand.
The Scale:
- EU is one of India's largest trading partners
- $136 billion in bilateral trade at stake
- Many Indian MSMEs supply EU-bound goods, directly or through larger exporters
Sustainability Provisions:
Modern EU trade agreements typically include provisions on:
- Trade and sustainable development
- Climate commitments
- Environmental standards cooperation
- Supply chain transparency
CBAM Connection:
The FTA doesn't exempt Indian goods from CBAM. Areas to watch include:
- Recognition of carbon data and verification
- Potential carbon pricing alignment
- Reduced compliance friction for verified exporters
MSME Action Items:
- Don't wait for the agreement to take effect: sustainability requirements are coming regardless
- Build carbon data capability now: EU buyers increasingly expect it
- Connect with export programs: government support is available
Competitive Positioning:
MSMEs with verified carbon data will be better placed to:
- Meet buyer compliance requirements
- Help EU importers replace CBAM default values with actual emissions, which can lower CBAM costs on covered goods
Start building your export readiness with verified carbon data. Explore climate finance to fund the transition.
Related guides
Senseible · Guides · Calculators · Pricing · Contact