Inside the India–EU FTA: How Food & Agriculture Tariffs Are Being Opened—Selectively

After nearly 18 years of negotiations, India and the European Union finalised a landmark Free Trade Agreement (FTA) in January 2026. While headlines have focused on tariff cuts and market size, the real impact of the deal lies in its product-level design—especially for food and agriculture.

The agreement opens the Indian market to select European food and beverage products, while the EU offers limited and carefully calibrated access to certain Indian agri-exports. At the same time, both sides have clearly protected politically and economically sensitive farm sectors. Understanding where tariffs fall, where access is restricted, and what remains excluded is key for businesses, farmers, and policymakers on both sides.

EU Food Exports to India: Where Tariffs Fall

The FTA eases India’s import rules for a limited range of European food and beverage products. Official summaries show that the agreement cuts or reduces high agri-food tariffs—currently averaging over 36%—mainly for processed foods, premium items, and value-added products, while staple farm goods remain protected. This allows India to widen consumer choice in urban markets without undermining domestic agriculture.

Beverages: Reduced Duties on European Alcohol

Alcoholic beverages are among the most visible food categories covered by the agreement.

India has committed to phased reductions in import duties on European wines and spirits, which have traditionally faced very high tariff barriers. Official statements confirm that:

• Wine tariffs will fall from 150% to 75% when the agreement takes effect, and will be reduced further over time to as low as 20%.

• Spirits will see significant tariff relief, though duties will not be fully eliminated.

• Beer is included among alcoholic beverages and will receive tariff concessions under the agreement.

While detailed phase-down schedules will be clarified during implementation, the direction of travel is clear: improved access for European producers while giving India’s domestic alcohol industry time to adjust.

Overall, the changes are designed to open premium and mid-range segments while allowing India to retain protective buffers for domestic manufacturers.

Oils and Processed Foods: Gradual Opening of the Indian Market

India has agreed to liberalise several categories of processed and higher-value food products imported from the EU.

Based on official briefings:

• Olive oil tariffs will be reduced from 45% to 0% over a five-year period, significantly improving access for European producers.

• Processed agricultural products, including bread, confectionery, and similar packaged foods, will see tariffs of up to 50% eliminated, either when the agreement takes effect or through phased reductions.

These concessions apply specifically to EU-origin goods and are structured to give Indian producers time to adjust, avoiding sudden market disruption while encouraging competition in value-added food segments.

Fruits and Juices: Phased Access with Safeguards

For fruits and fruit-based products, the agreement adopts a cautious and controlled approach.

Official summaries indicate that:

• Fruit juices and non-alcoholic beverages from the EU will benefit from phased tariff reductions.

• Fresh fruit access is subject to conditions and safeguards, including phased implementation and volume controls.

Rather than total liberalisation, this framework allows gradual market access with protections for Indian farmers and price stability in sensitive horticulture segments.

Meat Products: Selective Market Opening

India’s commitments on meat products remain limited. The agreement allows for restricted tariff reductions on select meat categories, primarily in processed or niche segments. At the same time, sensitive livestock sectors remain protected, reflecting long-standing domestic policy priorities related to agriculture, food security, and livelihoods.

Full liberalisation of meat imports has been explicitly avoided.

Core Agriculture: What India Keeps Protected

India has excluded its most sensitive agricultural sectors from tariff liberalisation under the FTA.

Official statements confirm that core farm products—such as dairy, cereals, and other staples—remain outside the agreement’s tariff-cutting commitments. These exclusions are driven by concerns over farmer livelihoods, price stability, and food security in a sector that supports a large share of the population.

Indian Food Exports to the EU: Measured Market Access

On the EU side, concessions for Indian agri-exports are targeted and limited, rather than comprehensive. The agreement provides for calibrated market access for certain Indian food and agricultural products, primarily through:

• Phased tariff reductions

• Conditional or quota-based entry mechanisms

Detailed product-level quotas and schedules are expected to be clarified as the legal texts are finalised.

All Indian agri-food imports will continu

e to be required to comply fully with the EU’s strict health, safety, and food-quality standards, which remain unchanged under the agreement.

EU Agriculture Remains Largely Shielded

The EU has also protected its most sensitive agricultural sectors.

Official summaries confirm that products such as beef, chicken meat, rice, sugar, and other politically sensitive farm goods are excluded from liberalisation under the FTA. This mirrors India’s approach and reflects the continued importance of agriculture within the EU’s domestic policy framework.

A Deliberate Balance, Not Blanket Free Trade

The India–EU FTA does not represent a sweeping opening of agricultural trade. Instead, it follows a layered and cautious model.

Processed foods, beverages, and premium products see meaningful tariff relief, while staple agriculture and sensitive farm sectors remain protected on both sides. For businesses, the agreement offers clearer rules and phased access. For governments, it preserves policy space to manage domestic priorities.

In short, the India–EU FTA does not make all food trade free—but it carefully redraws the map, product by product.