Expert Interview, News from MEAI
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22.08.2024
In January 2026, the European Union and India concluded negotiations on a long-anticipated Free Trade Agreement (FTA). The agreement has not yet entered into force and still requires formal ratification on both sides. However, once implemented, it is expected to remove tariffs on more than 96 percent of EU exports to India and improve market access conditions for European companies.
For many internationally active German, Austrian and Swiss organisations, this development is already strategically relevant.
Not because the agreement is active yet, but because preparation typically begins before implementation.
Free trade agreements rarely change markets immediately. What they change first is how companies assess future positioning.
In conversations with DACH headquarters and regional leadership teams, India is increasingly discussed alongside existing Asia structures, particularly in industries such as:
For companies evaluating future market entry, production partnerships or sourcing options, the period between negotiation conclusion and implementation is typically used to review structures, partners and organisational setup.
According to the European Commission, the agreement is expected, once ratified, to reduce or eliminate tariffs on the majority of EU exports to India and lower regulatory barriers in several sectors.
The Commission also estimates that tariff reductions could save European exporters approximately €4 billion annually after implementation.
At the same time, India represents one of the world’s largest and fastest-growing industrial markets, with expanding capabilities across manufacturing, engineering and technology-driven sectors.
However, improved framework conditions alone do not determine market success.
Operational execution remains the decisive factor.
In international expansion projects, leadership and organisational decisions frequently begin before regulatory frameworks change.
Companies assessing market opportunities typically start by reviewing:
Experience from international market entry projects shows that organisations preparing early are often better positioned once improved framework conditions become operational.
The conclusion of negotiations on the EU–India FTA follows shortly after the signing of the EU–Australia Free Trade Agreement. Together, these developments reflect broader efforts to strengthen economic cooperation between the EU and key partner markets in the Indo-Pacific region.
For internationally active DACH companies, this can influence how future regional structures across Asia and ANZ are evaluated.
Typical strategic considerations include:
These questions usually arise before agreements formally enter into force.
India offers strong industrial ecosystems, a large talent pool and regionally differentiated business environments. At the same time, successful market development depends on how effectively organisations connect headquarters expectations with local execution realities.
Companies preparing market entry or expansion commonly focus on:
Local competence
Understanding regional regulatory environments and stakeholder structures supports faster operational setup.
Cultural alignment
Leadership effectiveness benefits from early alignment between headquarters decision processes and local working environments.
Long-term organisational planning
Stable local structures typically support more sustainable market development than short-term pilot approaches.
At Departer, we support internationally active DACH companies with leadership hiring and organisational setup across India and the wider MEAI region (Middle East, Africa and India).
In many cases, this support begins during exactly the phase companies are currently entering: the preparation phase between political agreement and implementation of improved market access conditions.
Because in international expansion, organisational readiness often starts before regulatory change becomes operational.
If India is becoming part of your international roadmap, we would be happy to exchange perspectives.
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