The India–European Union Free Trade Agreement is expected to mark a shift in base metals trade from a pre-FTA tariff-bound regime to a post-FTA market-access framework, influencing exports of steel, aluminium, nickel, zinc and lead into a bloc that accounts for nearly 25% of global GDP and about one-third of global trade.
Speaking at India Energy Week, Prime Minister Narendra Modi said that “just yesterday, a significant agreement was signed between India and the European Union,” which he said people across the world are calling the “mother of all deals.”
He said the agreement brings opportunities for India’s 140 crore people and millions across European nations, and reflects coordination between two of the world’s largest economies.
The Prime Minister said the deal represents nearly 25% of global GDP and about one-third of global trade, adding that beyond trade, it strengthens the shared commitment to democracy and the rule of law.
Pre-FTA Export Data
Prior to the FTA, India’s base metals exports to the EU operated under existing tariff structures, shaping trade volumes and product mix across metals categories.
Export values, based on data from the Ministry of Commerce and Industry, Government of India, show that finished steel dominated India’s base metals exports to the EU in the pre-FTA period, with shipments valued at $6.64 billion, accounting for over 30% of India’s base metals exports to the bloc.
Primary aluminium exports stood at $754.6 million, making the EU a key overseas market for Indian aluminium products even under the pre-tariff regime. Iron ore and concentrates exports were valued at $34.04 million, while exports of nickel, zinc and lead stood at $23.09 million, $17.24 million and $15.81 million, respectively.
Resilient Supply Chains
Industry participants said the agreement is expected to alter conditions post-FTA, particularly if existing duties are waived or reduced. Rajib Maitra, partner, Deloitte India, said, “The EU-India FTA will provide higher market access for aluminium and nickel products as EU is a key market for both.”
He added, “It will also provide opportunities for zinc and lead exports.” Maitra said, “In case the existing nominal duty is waived off, it will be beneficial for the Indian industries exploring base metals exports.”
Industry participants also pointed to supply-chain implications in the post-tariff phase. Rishi Srivastava, Co-Founder, Offgrid Energy Labs, said, “The proposed Free Trade Agreement has the potential to materially reshape base-metal supply chains by making them more resilient, transparent, and diversified.”
Referring to zinc, he said, “Improved market access and reduced trade barriers enable a steadier flow of material into Europe, at a time when zinc is gaining strategic importance beyond traditional uses, particularly in zinc–bromide batteries for long-duration energy storage.”
He added, “This not only strengthens Europe’s manufacturing and energy-security objectives but also positions India as a reliable partner in critical-mineral value chains.”
With steel and aluminium already forming the bulk of exports in the pre-FTA tariff regime, exporters are now assessing how the post-FTA tariff environment will shape trade flows under the India–EU framework.