Assessing India's Export Potential to European Union Markets: Opportunities and Challenges

Abstract

India's trade relationship with the European Union (EU) presents significant opportunities for export growth. The EU is among the largest trading partners of India, having significant potential in terms of goods and services. Competitive pricing, a skilled workforce and an expanding manufacturing ecosystem make India a promising export destination. Of particular promise are textiles, pharmaceuticals, IT services and engineering goods. Market access also shapes India’s export strategy alongside other trade agreements and policy frameworks. Many opportunities exist, but challenges remain. These include, export competitiveness (which is influenced by regulatory standards and product compliance), tariff barriers etc.  Inefficiencies in logistics and supply chain also pose challenges for Indian exporters. Geopolitical implications such as trade policies and economic volatility influence the stability of the markets. India's export potential can be enhanced with strategic interventions. Key priorities include strengthening trade negotiations, improving infrastructure, and generating opportunities for SMEs to engage in export-oriented sectors. New entry channels may emerge through digital trade platforms and e-commerce. India must meet and conquer such challenges and work with opportunities that will enable it to have more foothold in the EU markets, thereby fostering sustained trade momentum between the two regions. A sample of 230 people from export sector were surveyed to know the factors that determines India's Export Potential to European Union Markets and found that Diversified Market, Tariff & Non-Tariff Barriers, Regulatory Barriers, and Digital Services Growth are the factors that shows India’s export potential.