Moody's: India-EU FTA 'Credit Positive,' Boosts Manufacturing & Exports

At the heart of the pact are tariff cuts that could make several products cheaper, while some sectors may see limited benefits or remain protected. Here is a look at what is likely to get cheaper — and what may not — after the India-EU FTA. (Image: Reuters)

Economy

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CNBC TV18•27-01-2026, 20:33

Moody's: India-EU FTA 'Credit Positive,' Boosts Manufacturing & Exports

•Moody's Ratings deems the India-EU Free Trade Agreement (FTA) 'credit positive' for India, citing lower tariffs and improved market access.
•The FTA supports India's strategy to expand domestic manufacturing, attract foreign investment, and enhance global competitiveness of labor-intensive exports.
•Prime Minister Narendra Modi announced the historic FTA with EU leaders Ursula von der Leyen and Antonio Costa, calling it a 'new blueprint for shared prosperity'.
•Lower tariffs on EU goods could reduce input costs for Indian manufacturers, while European automakers gain easier access to India's car market.
•Moody's emphasizes that the FTA's success hinges on India's domestic reforms, including business friendliness and regulatory streamlining.

Why It Matters: The India-EU FTA is a credit positive development, poised to boost India's manufacturing, exports, and economic ambitions.

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