Romanians' expectations from the EU-India Agreement: “From now on, any Western European will compete with the Indians”

The historic agreement reached between the European Union and India opens up new trade prospects for the two major economic powers, but it is not without controversy. It sparked heated debates, and some Romanians, as well as Indians, view it with skepticism.

Some Romanians believe that the new treaty will encourage the import of labor. Photo: Freepik.com

The India-European Union Free Trade Agreement (FTA), announced on January 27 at the New Delhi Summit, was billed as a historic trade treaty with significant benefits for the Europeans and India.

Two great economic powers, closer

The country of nearly 1.5 billion people, led by Prime Minister Narendra Modi, will gain better access to European markets, the volume of trade between the two major economic powers will increase and EU companies will enter the Indian market more easily.

“The EU-India deal will bring immediate benefits to European companies and citizens. India already accounts for more than €180 billion in annual trade in goods and services with the EU, supporting almost 800,000 jobs in Europe. Through this deal, tariffs will be eliminated or reduced on 90 percent of trade. Over time, European exporters are expected to save up to €4 billion a year in taxes, and EU exports will more than double“, pointed out the president of the European Commission, Ursula von der Leyen.

The deal comes in a tense geopolitical context, with both India and the EU facing economic pressure from the United States.

“It is a historic agreement. It will facilitate the access of Indian farmers and small businesses to European markets, stimulate production, services and innovative partnerships,” said Narendra Modi.

It is considered one of the most comprehensive trade treaties ever negotiated by either side. It provides for major, phased reductions in import duties, targeting trade in goods and favoring, among other things, the import of European cars, where tariffs will drop from about 110 percent to about 10 percent, with caps for certain categories. Customs procedures will be simplified and regulations will aim for faster and cheaper trade.

For India, the agreement brings better access to the European Union market, with more than 450 million inhabitants, but also facilities for exports and attracting foreign investment in manufacturing, technology and clean energy, as well as diversification of markets.

Sensitive sectors, especially agriculture and dairy products, remain largely protected or excluded from the treaty's provisions, and trade liberalization will be gradual to protect domestic industries. Indian officials have reiterated that the agricultural and dairy sectors will not be opened, citing the need to protect millions of subsistence farmers. Instead, the EU is pushing for significant tariff cuts on cars, medical devices, wine, spirits and meat, as well as stricter rules on intellectual property.

International media reports that the negotiations have lasted nearly 20 years, were recently accelerated and concluded in early 2026. After the procedural stage in January, legal verification follows, and the entry into force of the trade treaty is estimated for late 2026 or early 2027, after ratification.

How Romanians see the new agreement

Presented as a historic agreement that will radically improve trade between the European Union and India, having an important economic impact, the treaty has aroused the interest of many Romanians. Some view it with optimism, while others offer reasons to be less confident in its benefits. Some are aimed at importing cheap labour, but also the fact that many European companies may be tempted to move production to India to cut costs and maximize profits.

A Romanian believes that the trade agreement will primarily help corporations.

“All the corporations are going to move their factories to India, where there are very low wages and almost zero regulations, and they're going to ship their products here duty-free. And those who have factories here are going to import cheap labor from India. At least the prices of the products would go down, but we all know that it's only going to increase the profits of the companies.” he comments on the Reddit platform.

Someone else believes that more and more Indians will come to work in Romania, in all fields, from unskilled to skilled, and at the same time some companies will outsource their industrial production to India.

“European economic elites have strictly sought to solve the cost and inflexibility of European labor and have solved it. From now on, any Western European will be competing with Indians who will do any minimum wage job.” he states.

Other Romanians, however, are more skeptical about moving some factories to India, which they consider risky for such investments. Some Romanians believe that the agreement will have the effect of increasing anti-immigration sentiment.

“We have technological dependencies. By trading with India, we are not going to overcome them,” someone else thinks.

Another Romanian is of the opinion that, by the fact that Indians can be easily attracted to Europe in strategic fields, mainly in IT, it could help the development of the IT industry in Europe.

“The problem is that we want good Indians to come, not those whose main quality is that they are cheap. But the good ones don't know how much they would be attracted to Europe: salaries in India for IT professionals are equal to those in Romania, maybe even a little higher”says someone else.

“Everybody Wins in Trade”

The deal has sparked debate among Indians as well. Some argue that the EU and India have different priorities that they want to leverage through this deal.

“The EU wants lower import duties on cars, wine, dairy products and high-end manufactured goods. India wants easier movement for professionals, better access for IT services and fewer barriers for the pharmaceutical and technology industries. This is not a minor misunderstanding. It is the heart of the deal. If India cuts tariffs too quickly, small manufacturers and SMEs will suffer. Competing with subsidized European products is not easy at all.” states an Indian.

Others believe that if small producers and small firms will have to adapt to the new rules of trade.

“Protectionism doesn't build industry; it builds monopolies and strangles consumer choice, favoring inferior products and stagnant economic growth. It's one reason why economists are broadly in favor of free trade, regardless of the state of local industries.” he states.

Even though a few SMEs will be closed, European companies will open offices in India to sell their products and bring better quality products, adds another Indian.

“Furthermore, any businessman can import or export products to/from the EU and make a living. Ultimately, this agreement will not come into force until the European Parliament votes on it. That will take about a year, so everyone knows there is time to adjust and build new supply chains.” add this one.

In trade, everyone wins, because no one can produce everything, says another.

“Through trade, everyone has access to everything. Europe will also get mini cars from India, costing around 6,000 euros. In the EU, it is impossible to produce cars with such a low cost,” add this one.

Another Indian admits that if India could finally deliver products and services of consistent quality, there would be a huge benefit to many businesses.