The Quiet European Cities Behind India’s Everyday Supply Chains — and Why They Matter Now

As the India–European Union Free Trade Agreement (FTA) moves from conclusion toward formal implementation, attention has largely focused on national leaders, headline tariff cuts and broad economic projections. Yet much of the agreement’s practical impact will be felt in specific European cities and industrial regions that already anchor India–EU trade in manufacturing, technology, logistics and specialised sectors. These emerging network of ports, production centres and innovation hubs is quietly shaping how goods, services and know‑how move between India and the 27 EU member states.

Key European City Hubs in India–EU Supply Chains

City Networks in a New India–EU Trade Framework

According to the European Commission and the Government of India, the India–EU FTA is designed to reduce or eliminate tariffs on a wide range of goods, ease non‑tariff barriers, and improve predictability for businesses through clearer rules and regulatory cooperation. The agreement builds on an already substantial economic relationship: the EU is among India’s largest trading partners for both goods and services, with manufactured products, machinery, transport equipment and chemicals forming a major share of bilateral trade.

Within this framework, a set of European cities and regions plays a central role in the day‑to‑day functioning of supply chains—hosting factories, technology clusters, logistics platforms and business forums that connect directly with Indian partners. Their importance is likely to grow as businesses seek to use the new FTA provisions to expand production, diversify sourcing and deepen long‑term partnerships.

Manufacturing Hubs and Industrial Supply Chains

Manufacturing has long been at the heart of India–EU economic engagement. Official EU trade data show that machinery and appliances, transport equipment and other manufactured goods account for a significant share of EU exports to India, while India’s exports to the EU include machinery, base metals, textiles, chemicals and other industrial products. The FTA framework aims to make this exchange more efficient by progressively lowering tariffs and improving conditions for industrial cooperation.

European industrial regions with strengths in automotive components, precision engineering and capital goods are closely integrated into these flows. As tariff schedules are adjusted under the agreement, these centres are positioned to work more closely with Indian manufacturers, both as suppliers of advanced equipment and as partners in value chains that serve markets in Europe, India and beyond.​

Maritime and Air Trade Routes

Italian Industrial Regions and Sectoral Cooperation

Italy has been particularly active in promoting deeper industrial and technology partnerships with India. The Italy–India Business Forum held in 2025, under the co‑chairmanship of Minister of Commerce and Industry Piyush Goyal and Italian Deputy Prime Minister and Minister of Foreign Affairs and International Cooperation Antonio Tajani, highlighted cooperation in sectors such as automotive, clean energy, sport technologies, waste‑to‑energy and agri‑food processing.

Official readouts from the forum emphasised several priorities: increasing bilateral trade, improving supply‑chain resilience, and identifying opportunities for joint ventures, technology transfer and research collaboration between Italian and Indian companies. Italy’s industrial districts—in areas known for automotive components, machinery and food‑processing technologies—therefore remain important partners for Indian firms seeking high‑quality equipment and co‑development opportunities as the FTA is operationalised.​

Technology and Smart‑City Links in Central Europe

Beyond traditional industrial centres, European technology hubs and smart‑city platforms are building closer links with Indian stakeholders. Wrocław in Poland, for example, has hosted the Smart City Forum, a gathering that brings together local governments, technology firms and other partners to discuss digital solutions and sustainable urban development. In parallel, initiatives supported by Polish and Indian organisations have promoted cooperation in areas such as smart‑city technologies, innovation ecosystems and digital tools for urban management.

These engagements align with broader India–EU priorities on digitalisation, sustainable growth and urban infrastructure. At the policy level, both sides have highlighted cooperation on green and digital transitions as a key pillar of their partnership, creating space for city‑level collaborations that connect European expertise in urban technology with India’s rapidly expanding cities and digital public infrastructure.

India–EU Operational Partnerships

European Ports as Gateways for India–EU Trade

European seaports are central to the physical movement of goods between India and the EU. The Port of Antwerp‑Bruges, one of Europe’s largest multi‑cargo ports, has maintained a long‑standing partnership with India, including through a representation office in Mumbai and sustained engagement with Indian port authorities and logistics stakeholders.

Cooperation between Jawaharlal Nehru Port Authority (JNPA) and Antwerp‑linked training and port institutions has focused on areas such as capacity‑building, knowledge‑sharing and port operations, as highlighted in official and semi‑official communications from JNPA and Belgian delegations. Antwerp also remains a major global centre for the diamond trade, and Belgium continues to be an important interlocutor in India’s exports and imports of gems and jewellery.

Northern European ports such as Rotterdam and Hamburg act as key gateways for Indian goods entering and leaving the European market. In 2025, India and the Netherlands announced work on a Green and Digital Maritime Corridor involving the Port of Rotterdam and Indian ports, aimed at facilitating cleaner and more efficient trade flows, including in energy and container traffic. These port‑city linkages are critical to turning FTA provisions into real‑world logistics routes that support businesses on both sides.

Air Connectivity and Time‑Sensitive Cargo

Air connectivity complements maritime routes, particularly for high‑value and time‑sensitive goods. National carriers and cargo operators have announced steps to expand or restore direct flight links between Indian and European cities, improving options for both passengers and air freight. For example, Air India has confirmed the resumption of non‑stop flights between Delhi and Rome, strengthening direct connectivity between India and Italy and facilitating business travel and cargo movement.

Such developments align with broader efforts by Indian authorities to enhance the country’s role as an air‑cargo and logistics hub, and they provide additional channels through which the India–EU FTA’s trade‑facilitation measures can be realised in practice.

The Power of Trade Nodes

Why These Cities Matter in the FTA Era

Taken together, Europe’s industrial regions, technology hubs, ports and connected airports form an essential operational layer beneath the high‑level India–EU FTA. Manufacturing centres support the production and movement of machinery, vehicles and industrial goods; technology and smart‑city platforms enable collaboration on digital solutions and sustainable infrastructure; and logistics nodes—from Antwerp‑Bruges and Rotterdam to other European gateways—ensure that these exchanges reach markets efficiently.

As the FTA framework enters its implementation phase, the extent to which businesses benefit from new market‑access conditions will depend on how effectively these city‑level ecosystems are used to build partnerships, upgrade capabilities and diversify supply chains. By providing the physical and technological infrastructure for trade, Europe’s less‑visible industrial and logistics centres are positioned to play a sustained role in supporting and deepening India–EU economic ties in the years ahead.