Balagopal Balachandran, National Head- Air Freight, FEI Cargo said, “From a logistics and manufacturing standpoint, the India–EU Free Trade Agreement is a structural enabler rather than a short-term volume catalyst. Its real value lies in trade certainty, simplified customs processes, clearer rules of origin, and stronger alignment on compliance, sustainability, and digitalisation creating a stable foundation for long term manufacturing decisions. A key and interesting outcome is likely to be a quality led shift in sourcing. Improved access to European machinery, automation, and advanced manufacturing technologies can push Indian producers to prioritise precision, durability, and lifecycle efficiency over prevailing low-cost alternatives. This improves consistency, reduces rework, and strengthens India’s competitiveness in regulated and quality sensitive sectors.
Sectors where volumes are expected to rise could be engineering goods, textiles and apparel, chemicals, and marine products which also demand tighter compliance and reliable transit. These are segments where air cargo and resilient multimodal networks play a critical role. For airlines and freight forwarders, the focus should be on capability building, specialised handling, compliance readiness, and resilient networks. The India -EU FTA will reward preparedness, capability, and alignment – not just opportunistic capacity.”
