IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkpb/336759.html

The EU-India trade deal: Strategic diversification in an era of uncertainty

Author

Listed:
  • Hinz, Julian
  • Langhammer, Rolf J.
  • Mahlkow, Hendrik
  • Thakur, Vasundhara

Abstract

• The EU-India FTA generates mutual economic gains of 0.12-0.13% of GDP for both partners, with bilateral trade surging by 41-65%. • Since the 50 percentage points tariffs imposed by the US cost India 1.6% of GDP, the EU-India FTA provides a crucial hedge while the EU demonstrates commitment to open trade amid global protectionism. • The EU-India FTA results in a substantial trade diversion from China (an estimated 5-9%), supporting both EU de-risking objectives and India's supply chain diversification strategy. • The FTA's structural benefits persist regardless of US policy changes making this trade deal a long-term partnership, not a temporary hedge.

Suggested Citation

  • Hinz, Julian & Langhammer, Rolf J. & Mahlkow, Hendrik & Thakur, Vasundhara, 2026. "The EU-India trade deal: Strategic diversification in an era of uncertainty," Kiel Policy Briefs 202, Kiel Institute for the World Economy.
    • Handle: RePEc:zbw:ifwkpb:336759
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/336759/1/1950811263.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkpb:336759. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.