Historic peak in Delhi. The EU and India open markets after 20 years of talks. Will Poland benefit?
The opening of the Indian market may be an opportunity for Polish producers of machinery, cosmetics, specialized medical equipment, green technologies and food products – according to preliminary estimates of the Ministry of Development and Technology and a report of the Polish Investment and Trade Agency. cosmetics, specialized medical equipment, green technologies and food products
On Tuesday, at the summit in Delhi, with the participation of Indian Prime Minister Narenda Modi, the head of the European Commission, Ursula von der Leyen, and the President of the European Council, Antonio Costa, the negotiations that have lasted approximately 20 years are to be concluded and a preliminary free trade agreement between the EU and India is to be concluded. India is to open its market to industrial goods from the EU, including cars, by reducing high customs duties, considered prohibitive by European producers.
Opportunities for Polish industry
According to Deputy Minister of Foreign Affairs Ignacy Niemczycki, this agreement offers great opportunities for the Polish industry.
– First of all, I would like to draw attention to the fact that agricultural issues are practically completely excluded, so there is absolutely no reason for concern here, such as in the case of Mercosur – noted the deputy head of the Polish Ministry of Foreign Affairs.
Preliminary estimates by experts (including the Ministry of Development and Technology) show that after the agreement enters into force, exports may increase, among others: Polish machinery sector, including mining machinery and heavy industry equipment, which currently has tariffs ranging from 7.5 to 15 percent. In addition, the export of specialized medical equipment, green technologies, food products and information and communication technologies (ITC) may increase.
The next beneficiary may be Polish cosmetics sectorfor which India with its growing middle class is a market with great potential. According to the report of the Polish Foreign Investment Agency, the main products sold on the Indian market are: beauty cosmetics, foot care creams, sunscreen and tanning preparations, and painting cosmetics. The report indicates that the abolition of 20% customs duties and mutual recognition of safety research results may enable Polish companies to effectively compete with global corporations.
Trade with India
The latest data from the Central Statistical Office show that from January to November 2025, Poland exported goods to India worth USD 1.37 billion. (for comparison, exports in the entire 2024 amounted to USD 1.44 billion.) The largest share in exports last year had: machines and mechanical devices (USD 399.53 thousand), base metals (USD 257.65 thousand), mineral products (USD 163.36 thousand) and chemical products (USD 118.29 thousand).
In turn, from India (from January to November 2025) we imported goods worth USD 4.49 billion, while in the entire 2024 imports amounted to USD 4.36 billion. We mainly imported textile materials and products (USD 947.79 thousand), footwear and headgear (USD 947.79 thousand), machinery and equipment (USD 838.42 thousand), and pharmaceuticals (USD 606.37 thousand).
Data from the Central Statistical Office show that trade between Poland and India is growing dynamically, reaching a turnover of USD 5.7 billion in 2024. The trade deficit amounted to $2.9 billion. In 2023 it was just over EUR 2 billion, in 2022 EUR 2.5 billion and in 2021 EUR 1.7 billion.
Polish business is already in India
India is the second largest target market for investments from Poland in Asia. The largest Polish investors in India include companies from the packaging industry (CanPack), hygiene and sanitary products (TZMO), components for the automotive and railway industries (Maflow, MB Pneumatyka, Elimen, Polmor), companies developing IT/ICT services (Billennium, Transition Technologies), and companies from the cosmetics, furniture and mining industries.
The National Bank of Poland values Indian investments in Poland at over PLN 1.8 billion. The largest Indian investors and employers in Poland include: Tata Consultancy Services, Infosys, Uflex, Essel Propack, HCL Technologies, Wipro, Berger Paints, Glenmark Pharmaceuticals, and Rishab Instruments (Lumel).
The EU-India free trade agreement is expected to create one of the largest trading areas in the world, with around 2 billion people. Similarly to the agreement with Mercosur, India is to open its market to industrial goods from the EU, including cars, by reducing high customs duties, considered prohibitive by EU producers. Reuters reported on Sunday, citing a source in Delhi, that the Indian government has proposed reducing the customs duty from 110 to 40 percent. for 200 thousand European cars with combustion engines per year.
Possible liberalization of agricultural trade raises concerns in India, where – despite a drastic decline in the share of agriculture in GDP – it is still a key branch of the economy. It is estimated that about half of India's over 1.3 billion inhabitants earn their living from agriculture. (PAP)
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