NEW DELHI: Services trade and cross-border mobility for professionals have emerged as key gains for India under the newly concluded India–European Union Free Trade Agreement (FTA), with the pact securing expanded market access for Indian service providers and a predictable framework for the movement of skilled and semi-skilled workers across Europe.
According to the Ministry of Commerce and Industry, the agreement delivers “ambitious and commercially meaningful” commitments in services, reflecting the growing importance of the sector, which is the fastest-growing component of both the Indian and EU economies. India–EU trade in services stood at about $83 billion in 2024, and officials expect this to rise sharply once the agreement comes into force.
Under the FTA, Indian service providers will get predictable access to the EU market across 144 subsectors, including information technology and IT-enabled services, professional services, education, financial services, tourism, construction and other business services. The government said this certainty of market access and non-discriminatory treatment would help Indian companies scale up operations and offer competitive services to European consumers.
In return, the EU will gain access to 102 services subsectors in India, a move expected to attract greater European investment and high-end services into the Indian market, deepening bilateral integration.
A major highlight of the agreement is a future-ready mobility framework that facilitates short-term and temporary movement of professionals in both directions. The framework covers intra-corporate transferees (ICTs), business visitors and other categories essential for services trade. Importantly, it also provides entry and work rights for dependents and family members of ICTs, a provision that has long been sought by Indian companies and professionals.
The EU has committed market access in 37 sectors and sub-sectors for contractual service suppliers and 17 sectors for independent professionals. These include areas of strong Indian interest such as professional services, computer and related services, research and development, and education.
India has also secured a framework to engage constructively with the EU on social security agreements over a five-year horizon, which could help address issues related to double contributions by Indian professionals working in Europe. In addition, the pact supports student mobility and post-study work opportunities, strengthening educational and people-to-people links.
In a niche but significant provision, the agreement allows practitioners of Indian traditional medicine to work under their home qualifications in EU member states where such practices are not regulated, opening new avenues for India’s wellness and traditional healthcare professionals.
Financial services form another pillar of the services chapter. The FTA promotes cooperation in areas such as innovation and cross-border electronic payments, while granting India enhanced market access in several major EU member states. Officials said this would help deepen financial integration and boost trade in banking, insurance and fintech services.
Commerce and Industry Minister Piyush Goyal said the services and mobility commitments go beyond a conventional trade deal, positioning India as a global hub for talent and innovation. “Beyond goods, the agreement unlocks high-value commitments in services, complemented by a comprehensive mobility framework enabling seamless movement of skilled Indian professionals,” he said.
With services exports already a key driver of India’s external trade, the government expects the India–EU FTA to create new employment opportunities, particularly for youth and professionals, while reinforcing India’s role in global value chains and knowledge-based industries.