EU firms eye big India expansion after free trade agreement
Nearly all EU companies in India are gearing up to grow, thanks to a new Free Trade Agreement.
A recent FEBI survey of 120 firms—spanning tech, cars, energy, and pharma—shows 95% plan to ramp up their India presence over the next five years.
Where's the action?
Most EU firms are betting on manufacturing (69%), but there's also strong interest in Global Capability Centers (37%) and supply chains (35%).
About half expect to drop at least €20 million each in India overall—with a quarter aiming for investments over €100 million.
Why now—and what's the catch?
EU companies say affordable manufacturing, political stability, and skilled talent make India attractive.
This could mean more jobs and investment coming in.
But there are still headaches: 71% of firms worry about tricky regulations and approvals slowing things down.