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India–EU FTA set to double trade, drive cargo demand

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The FTA presents a chance for exporters and manufacturers to fortrify competitiveness. Prediman Koul, CEO, Jeena & Company, calls it a development that opens access to the vast consumer markets of Europe, diversifies export destinations, and enhances supply chain resilience amid shifting trade dynamics.

CT Bureau

The recent India-EU Free Trade Agreement (FTA), often referred to as the ‘mother of all deals,’ gives Indian exporters and manufacturers an opportunity to enhance their global competitiveness. The agreement provides access to one of the world’s largest markets, help diversify export destinations, and improve supply chain resilience. The sectors likely to benefit include textiles, apparel, leather, gems and jewellery, marine products, technology-led industries, and engineering goods. Reduced tariffs enable the exporters to scale globally and integrate closely with European value chains, supporting employment and long-term trade growth.

Scaling operations

We are focusing on measured expansion across critical trade lanes, including North America, Germany, China, Latin America, Southeast Asia, and Latin America, particularly the Mercosur bloc of Brazil, Argentina, and Paraguay. We prioritise sustainable growth over rapid expansion, strengthening operational excellence, technology adoption, and service offerings. Investments in digital tools and predictive analytics allow the companies to manage difficult international logistics efficiently, while delivering consistent value to clients.

Planning investments

The FTA is expected to double India-EU trade volumes by 2032, creating new demand for improved connectivity, faster transit, and diversified supply chain routes. We see this as a vital moment for forwarders and airlines to plan investments. Those who expand capacities, strengthen trade lane coverage, and adopt technology-driven solutions are likely to capture more gains from growing cargo volumes.

Geopolitical risks

While the deal presents opportunities, challenges remain, particularly due to ongoing tensions in West Asia and the Middle East region. Proactive monitoring, scenario planning, and trade lane diversification are essential to mitigate these risks. By ensuring operational continuity and flexible logistics solutions, we help clients navigate volatility, optimise resources, and maintain commercial performance.

Culmination

The FTA offers a pathway for businesses to fortify their global footprint, while logistics providers must adapt to capture emerging trade flows. Combining operational resilience, technology adoption, and global market insights will be key to turning this agreement into sustained commercial success.

 

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