Šefčovič explained that the draft FTA is designed to liberalize tariffs on roughly 97–99 % of goods traded, though not all lines will see full duty elimination. For agriculture and dairy, the pact incorporates safeguards such as quotas and phased cuts, reflecting longstanding concerns from both Indian farmers and European producers about exposure to foreign competition. The nuanced tariff structure aims to balance market access with domestic sector protections.

The trade deal is expected to be implemented from 2027, once legal scrubbing and ratification steps are completed by both sides. EU aims include reducing administrative and regulatory barriers that currently slow bilateral commerce, and adopting a rapid response framework to sustain trade flows. For Indian exporters, the agreement promises a more predictable trading environment amid shifting global supply dynamics.

Šefčovič also highlighted that the FTA would unlock significant economic benefits beyond tariff cuts, potentially doubling trade in goods and services from today’s approximate USD 180 billion level and encouraging European investment in India. EU companies might save an estimated €4 billion annually in customs duties once the pact is fully in force, while sectors such as autos, textiles, IT and pharmaceuticals could see improved market access.