The new trade agreement with India will change the Polish labor market. We know who will benefit
The recently signed Free Trade Agreement (FTA) between the European Union and India creates one of the largest free trade areas in the world. Not only will it significantly facilitate the exchange of goods and services between two large markets, but it may also affect the EU labor market. We checked what may change for Polish employers and employees in connection with the new international agreement.
The main assumption of the Free Trade Agreement (FTA) between the European Union and India of January 27, 2026 is the abolition of customs and regulatory barriers that have so far limited the exchange of goods and services.. The agreement assumes broad liberalization of both areas – the European Union will waive customs duties on over 97 percent. imports from India, while India waives fees by 96.6%. products imported from Europe. In practice, this means a significant reduction or complete elimination of customs duties on key categories of goods, such as machines, vehicles, aviation equipment, pharmaceuticals and chemical products. Customs duty on cars from Europe will be reduced from 110%. up to 10%, and automotive parts will be subject to a zero rate. At the same time, India is opening its services market to such a large extent for the first time, including: financial, telecommunications, maritime transport and professional services sectors. The growing scale of trade will translate into the development of logistics, transport and forwarding as well as the demand for specialized advisory, legal and tax services..
New opportunities for Polish companies and the labor market
Ultimately, the signed agreement will be an impulse not only for an increase in exports, but also for a significant expansion of cooperation between companies from the EU and India. While the agreement is primarily about trade, its impact could go beyond the flow of goods and services, also affecting the labor market and access to talent.
According to the European Commission, trade with India is already supported by approximately 800,000. jobs in the EUand the agreement is intended to strengthen this effect. Cheaper access to the Indian market may translate into an increase in orders and employment in the machinery, electromechanical, chemical, pharmaceutical and food industries.
The simplification of procedures will also benefit SMEs who have previously been hampered by the costs and complexity of entering the Indian market. More stable trade rules and less bureaucracy may encourage more companies to expand and, as a result, increase the demand for new employees.
A chance for greater employee mobility
In addition to customs and trade facilities, the agreement assumes the introduction of procedures enabling greater professional mobility of Indian and EU employees. Short-term business trips, intra-corporate transfers and project collaboration will become more easily available, especially in sectors such as IT, engineering, consulting and professional services. This type of facilitation may lead to more frequent transfers of highly qualified specialists from India to Poland.
According to Piotr Skierkowski, labor market expert at ManpowerGroup Polska, the implementation of the Free Trade Agreement (FTA) between the European Union and India will bring significant changes to the European, including Polish, labor marketfocusing mainly on high-skills and export sectors.
– It is estimated that the increase in exports to India, which is expected to double in the EU by 2032, will support the development of employment in Poland – says Piotr Skierkowski to Bankier.pl. – The greatest increase in demand for employees is expected in the machinery, chemical, cosmetics and food industrieswhich will gain easier access to the Indian market thanks to the abolition of 90 percent objective. Improvement is also possible in the automotive sector, thanks to the reduction of as much as 110%. customs duties on cars.
Is Poland a key project management hub?
Also, according to Włodzimierz Kucharczuk, Project Manager at Smart Solutions HR, the balance for the labor market may be positive.
– New jobs will be created in sectors such as export, logistics, business services, legal and tax consulting, technologies and international projects. Increased mobility of specialists, especially in the IT and engineering industries, will, on the one hand, influence competition in the area of talent acquisition, and on the other hand, it will accelerate the transfer of knowledge, says Włodzimierz Kucharczuk. – Thanks to relatively attractive labor costs, Poland has a chance to become a key hub for project management between the EU and India.
Workers from India have an open path to Europe?
According to a Manpower expert the agreement also opens the European labor market for specialists from Indiaalthough there are additional conditions in this area.
– The agreement provides for the simplification of procedures for specialists and students and the introduction of the so-called “mobility pathway”. The main goal is attracting talent in artificial intelligence, cybersecurity and data engineering to fill skills gaps in Europe – says Piotr Skierkowski. – The agreement also supports academic mobility, which is intended to encourage Indian students to study and later work in Poland. The document focuses on the so-called white-collar workers, while low-skilled workers are still subject to standard, restrictive national regulations. Companies will also be able to more easily delegate employees from India to their Polish branches for a specified period of time.
Are fears of a “flood” of the market by Indians groundless?
As Włodzimierz Kucharczuk points out, Facilitating procedures does not mean complete opening of borders or automatic access to the labor markets of EU countries.
– National visa and employment regulations, including Polish regulations regarding work permits, remain in force – explains the Smart Solutions HR specialist. – Despite this, the scale of the agreement raises questions about the potential impact on employment in Poland and fears of the market being “flooded” with workers from India. In our opinion, there is no reason to worry. The agreement does not enable mass labor migration, but rather will intensify cooperation between employees of both nationalities – emphasizes the expert.
Almost 11 percent foreign workers come from India
According to the data contained in the report “Foreigners on the Polish labor market. How does business evaluate cooperation with foreign employees” prepared by Smart Solutions HR, almost 11 percent all foreigners employed in Poland are workers from India, which means that they are already an important part of the Polish labor market. Visa facilitations may slightly increase the number of Indian specialists temporarily working in the EU – mainly in high-tech industries. In practice, however, it is more about project cooperation and outsourcing of selected processes than full-fledged employment.
– In the long term, this state of affairs should have positive effects on the development of the Polish IT industry, which is currently experiencing some downtime. To remain competitive, it will have to move towards high-added value services – cybersecurity, data analytics and advanced software development. This, in turn, may create demand for local specialists – says a representative of Smart Solutions HR.
There will be hands to work where there are none
According to Piotr Skierkowski, the influx of specialists from India will help Polish technology companies implement projects for which there is a shortage of labor in the country.
– There is, of course, a certain risk of increased competition in the IT and Hi-Tech industries, which may inhibit wage growth in some segments, although forecasts indicate a general, small but still increase in real wages throughout the EU – by about 0.1-0.2 percent.
Cooperation with Indian R&D centers and the inflow of talents can accelerate the digitalization of the Polish economy, and filling competence gaps in certain areas should have a positive impact on the further economic development and investment attractiveness of our country – sums up the expert.
