India-EU FTA to boost Indian exports, spur Danish investment in India: Denmark envoy Kristensen
The Danish envoy to India stated that the India-EU Free Trade Agreement is expected to significantly boost Indian exports to Denmark and other EU markets
The FTA is also expected to spur greater Danish investment into India, both to serve the domestic market and to manufacture goods in India for re-export to Europe
Denmark's envoy highlighted the need for stronger intellectual property rights (IPR) protection under the FTA, relevant both for Indian technology startups expanding into Europe and for Danish companies investing in India
The remarks were made in the context of deepening India-Denmark bilateral economic cooperation
India-EU FTA — Tariff Elimination and Market Access
The India-EU FTA, concluded 27 January 2026, is the largest trade agreement either side has concluded, establishing one of the world's biggest free trade zones covering nearly two billion consumers. It grants substantial tariff elimination for Indian exports while opening India's market gradually for select EU goods.
Key Details
- The EU will eliminate tariffs on 99.5% of India's exports by value, with 90.7% receiving immediate zero-duty access on entry into force
- Tariffs on labour-intensive Indian exports — textiles, apparel, leather, footwear, marine products, gems and jewellery, engineering goods, and automobiles — fall to zero immediately upon entry into force
- In return, Indian tariffs on European motor vehicles fall from up to 110% to as low as 10% (under quotas), with car parts becoming tariff-free over time
- Preferential access requires compliance with Rules of Origin, which determine the minimum local processing/value-addition needed to qualify for duty benefits
The envoy's claim that the FTA will "boost Indian exports" reflects this near-total EU tariff elimination on Indian goods once the agreement enters into force.
FDI and the "Manufacture-in-India-for-Export-to-Europe" Model
Beyond tariff cuts on trade in goods, an FTA typically catalyses foreign direct investment (FDI) as companies relocate or expand manufacturing to access preferential market entry — a pattern already used by countries with EU/US FTAs to serve as manufacturing-and-re-export hubs.
Key Details
- The FTA also includes a Non-Violation Clause, giving India consultation and rebalancing rights if future EU measures nullify the concessions won
- It incorporates cooperation on trade corridors, including the India-Middle East-Europe Economic Corridor (IMEC), announced at the G20 New Delhi Summit in September 2023 by India, the EU, and six other partners
- IMEC comprises transport, energy, and digital connectivity pillars linking India, the Gulf, and Europe
Danish investment aimed at "manufacturing in India for both local markets and export" is the classic FTA-driven FDI response, potentially reinforced by IMEC connectivity infrastructure linking India to Europe.
Intellectual Property Rights (IPR) Protection Framework
India's IPR regime is governed by the Patents Act, 1970 (amended 2005 to become TRIPS-compliant), the Trade Marks Act, 1999, and the Copyright Act, 1957, overseen internationally by the WTO's TRIPS Agreement (Trade-Related Aspects of Intellectual Property Rights), which sets minimum IPR protection standards for member states.
Key Details
- India became TRIPS-compliant through the Patents (Amendment) Act, 2005, introducing product patents for pharmaceuticals and agrochemicals
- FTAs with developed economies like the EU often include IPR chapters going beyond baseline TRIPS standards ("TRIPS-plus" provisions), covering enforcement, geographical indications, and data exclusivity
- A separate EU-India Geographical Indications (GI) agreement is being negotiated alongside the FTA and Investment Protection Agreement
The envoy's emphasis on IPR protection for both Indian startups entering Europe and Danish firms investing in India reflects the FTA's IPR chapter, designed to build mutual confidence for cross-border technology and manufacturing investment.
India-Denmark Green Strategic Partnership (2020)
India and Denmark elevated bilateral ties to a "Green Strategic Partnership" in September 2020, providing the institutional foundation on which the FTA-driven investment discussed by the envoy builds.
Key Details
- Announced 28 September 2020 via virtual summit between the Indian and Danish Prime Ministers
- Focus areas: renewable energy, water management, environment, and smart cities, anchored in Paris Agreement and SDG implementation
- Builds on the 2009 India-Denmark Joint Commission for Cooperation agreement; a detailed Action Plan was concluded in 2021
The envoy's reference to "doubling down on green priorities" alongside FTA-driven investment reflects this existing Green Strategic Partnership framework.
- India-EU FTA concluded: 27 January 2026; expected into force late 2026/H1 2027
- EU tariff elimination: 99.5% of Indian exports by value (90.7% immediate zero-duty)
- EU tariffs on Indian labour-intensive exports (textiles, leather, gems, engineering, autos): reduced to zero immediately on entry into force
- Indian tariffs on EU motor vehicles: cut from up to 110% to as low as 10% (quota-based)
- India-Denmark Green Strategic Partnership: launched 28 September 2020
- IMEC announced: G20 New Delhi Summit, September 2023 (India, EU, France, Germany, Italy, Saudi Arabia, UAE, USA)
- India's TRIPS-compliance milestone: Patents (Amendment) Act, 2005