Trade tailwinds: Indian farmers and SMEs need support for success in European export markets

The India-European Union free trade agreement (FTA) has reduced tariffs on many agricultural exports, but these alone won’t secure market access unless our exporters meet high EU import standards and sustainable production requirements. The EU, through its Green Deal and subsequent directives such as those on deforestation (EUDR) and Corporate Sustainability Due Diligence (EUCS3D), has implemented stiff regulations covering food safety, soil health and environmental and labour standards, including rules on greenhouse gas emissions and the wages, health, gender balance, age adequacy and work conditions of workers.

These issues are covered under different chapters of the India-EU trade deal. In the chapter on Trade and Sustainable Development, for example, both sides commit to environment protection, labour standards and sustainable production across the agricultural value chain.

The EU is among India’s top agri-export markets, accounting for over 10% ($5.25 billion) of our exports in 2024-25. While the FTA will help reduce tariffs and enhance the export prospects of marine products, grapes and other items, some of our core export items like rice and tobacco do not get any tariff reduction.

In 2024-25, unmanufactured tobacco was India’s third-largest agri-export to the EU, accounting for 9.7% of such exports ($511.8 million) while basmati rice ranked eighth with a share of 4.5% ($236.9 million). Securing export markets for such products is a necessity and requires meeting EU standards.

Indian rice exporters have been under the EU’s scanner for food safety, stubble burning and child labour. Between 2020 and 2025, 136 notifications were issued to the EU’s Rapid Alert System for Food and Feed on Indian rice exports, of which