EU to end tariff breaks for Indian exports in 2026
Big update: Starting January 1, 2026, the European Union will remove special tariff benefits (GSP) from most Indian exports.
This means nearly 87% of Indian goods—like clothes, steel, and machinery—will face higher taxes when entering Europe.
The EU says this is because India's exports have grown a lot over the past few years.
What this means for Indian businesses
Industries like textiles and chemicals will see tariffs jump by about 20%, making their products more expensive in Europe.
On top of that, new EU rules on carbon emissions (CBAM) are adding extra costs for sectors like steel.
With these changes, Indian exporters could lose ground to countries like Bangladesh and Vietnam that still get duty-free access in the EU.
Negotiations for a new India-EU trade deal just got a lot more complicated.