‘India going to have a heyday’: US says New Delhi ‘comes out on top’ in India–EU FTA

The United States has offered its first reaction to the recently announced India–European Union trade agreement, with Washington openly acknowledging that New Delhi is likely to emerge as the biggest beneficiary of the deal.

US Trade Representative Jamieson Greer said India would gain significantly through lower costs and enhanced access to European markets, at a time when trade talks between India and the US remain stuck.

“I think India comes out on top on this, frankly. They get more market access in Europe,” Greer said in an interview with a foreign media outlet. He also pointed to possible labour mobility provisions, noting that European Commission President Ursula von der Leyen has spoken about facilitating movement for Indian workers into Europe. “On net, India’s going to have a heyday with this. They have low-cost labour,” he added.

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Also Read: India–EU FTA: From luxury European cars to liquor, what gets cheaper for Indians after ‘mother of all deals’

US slams EU’s push for deeper globalisation

While acknowledging India’s gains, Greer took a swipe at the European Union, accusing Brussels of “doubling down on globalisation” at a time when the US is attempting to address what it sees as its downsides.

According to Greer, the EU’s outreach to India is partly driven by changing US trade policies under President Donald Trump, who has prioritised domestic manufacturing and imposed higher costs on market access. “Because the US has started charging a fee for other countries to access our market, these countries are looking for other outlets for their overproduction,” Greer said. He argued that the EU, being heavily trade-dependent, needs alternative markets as it cannot continue exporting at the same scale to the US.

“The EU is turning to India to find a place. They can’t keep sending all their stuff to the United States,” he added.

Notably, the remarks also comes at the back drop of US Treasury Secretary Scott Bessent criticism of EU, accusing it of failing to pressure India over purchases of Russian oil following Moscow’s invasion of Ukraine. Bessent claimed it was US tariffs—not European action—that led to a reduction in India’s Russian oil imports. He alleged that European allies refrained from applying pressure on New Delhi because they were keen to secure a major trade agreement.

India-EU FTA

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen on Tuesday announced the conclusion of the India–European Union Free Trade Agreement (FTA) at the 16th India–EU Summit in New Delhi, marking a major milestone in India–EU economic relations and which comes after years of negotiations, which were re-launched in 2022. The agreement signals a shared commitment by both sides to open markets, predictable trade rules and inclusive growth.

Also Read: From Textiles to Tech: Who gains what under India–EU FTA, sector-wise impact explained

Trade ties get a major boost

The European Union is one of India’s largest trading partners. In 2024–25, bilateral trade in goods stood at Rs 11.5 lakh crore ($136.54 billion), with Indian exports at Rs 6.4 lakh crore and imports at Rs 5.1 lakh crore. Trade in services touched Rs 7.2 lakh crore ($83.10 billion). Together, India and the EU are the fourth- and second-largest economies in the world and account for about 25 per cent of global GDP and nearly one-third of global trade. The integration of these two large economies is expected to unlock new trade and investment opportunities.