Under the agreement’s phased implementation, a significant share of tariffs will drop to zero duty over time on industrial and manufacturing exports, with textiles, marine products, gems and jewelry, toys and sports goods among the Indian sectors set to benefit immediately. On the EU side, products such as machinery, plastics and chemicals will similarly gain broader market access.

However, the deal has been carefully calibrated to protect sensitive sectors. India has kept dairy products, cereals and other agricultural staples outside the tariff liberalization, reflecting longstanding concerns about safeguarding the livelihoods of smallholder farmers and the domestic dairy industry. Small cars — the volume segment of India’s auto market — and other politically sensitive goods also remain protected from immediate tariff removal.

For the dairy value chain specifically, the exclusion from tariff cuts means milk powders, cheese and other dairy imports won’t flood the Indian market under duty-free terms, preserving price stability and competitive leverage for domestic processors and cooperatives. That stance aligns with India’s broader trade strategy of balancing export opportunities with agricultural protection.