Moody's calls India-EU trade deal a win for both sides

Business Jan 28, 2026

Moody's just called the new Free Trade Agreement (FTA) between India and the European Union a "credit positive" move.
The deal will cut tariffs on almost all goods traded between the two, making it easier for Indian and EU businesses to sell products like chemicals, cars, cosmetics, and even olive oil across borders.

Why should you care?

This FTA could double EU exports to India and save on duties each year.
For Indian manufacturing and labour-intensive sectors, it could support expansion—especially in textiles—provide better market access for homegrown brands, and increase competition in some sectors.
Moody's does say India needs more reforms to get the full benefits, but overall, this is a big step toward boosting India's global trade game.