How EU-India Trade Agreements Could Change the Game for Luxury Watches, Passenger Aircraft, and Other Sectors

How EU-India Trade Agreements Could Change the Game for Luxury Watches, Passenger Aircraft, and Other Sectors

Why Does This Matter?

The trade agreement between the EU and India aims to reduce customs barriers, simplify market access, and enhance technological cooperation.

These changes create unique opportunities for companies operating in the following key sectors:

Luxury Goods
Luxury watches, jewelry, and high-end products have long been in demand among India's affluent population. However, high import duties often limited their availability. The new agreement promises to reduce or even eliminate these barriers, allowing European brands to significantly expand their presence in the Indian market.

Sales of luxury goods are expected to grow by 15–20% within the first three years after the agreement is signed.
The luxury goods market in India is projected to reach $30 billion by 2027.

Aviation Industry and Passenger Aircraft Manufacturing

India is actively investing in its aviation sector, particularly due to the increase in domestic flights and international routes. European manufacturers like Airbus will gain significant advantages thanks to improved export conditions for aircraft and spare parts.

By 2030, India is forecasted to become the world’s third-largest aviation market.
The potential volume of orders for passenger aircraft exceeds $200 billion.

Pharmaceuticals
The EU is the largest exporter of medicines, while India is a global leader in generic drug production. Strengthening ties between the two regions could lead to joint developments and faster implementation of innovations.

The combined pharmaceutical market of the EU and India is valued at $150 billion.
Exports of medicines from the EU to India are expected to grow by 25%.

How EU-India Trade Agreements Could Change the Game for Luxury Watches, Passenger Aircraft, and Other Sectors

Green Energy and Technology

Transitioning to sustainable development is a priority for both regions. The agreement facilitates the exchange of technologies in renewable energy, such as solar panels and wind turbines. This opens new horizons for European companies specializing in green solutions.

Investments in green energy in India are set to reach $1 trillion by 2030.
Trade volume in the renewable energy sector is expected to increase by 30%.

How Will This Impact the Global Economy?

The new trade agreement will not only strengthen economic ties between the EU and India but also have long-term effects on global trade. Simplified procedures and reduced tariffs will set a precedent for other countries, potentially leading to new interregional agreements.
By Jake Sullivan  
January 28, 2026

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