Advanced Technologies
& Manufacturing
What does the
EU-India FTA change
for your business?
The EU–India Free Trade Agreement will progressively change the conditions under which industrial products, technologies and services enter the Indian and European markets.
IICCI has connected the negotiated tariff schedules with 2025 Italy–India trade data to help companies understand:
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when the tariff applicable to the product changes;
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whether the product may qualify for preferential origin;
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which certifications, registrations and technical requirements remain applicable;
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whether the new conditions change the optimal route to market or local-production strategy.
Preliminary discussion without obligation • Support in English and Italian • Response within two working days
€7.43 Billion
2025 Italy–India trade across Advanced Technologies and Manufacturing
€4.09 Billion
Italian exports to India across the sectors covered
9 Sectors
From A1 Space, Aerospace & Defence to B5 Automotive & Components
12,650 lines
Indian tariff lines analysed for Issue 1 of the Italy-India Economic Observatory
The figures aggregate the A1–A3 and B1–B5 sector perimeters used by the Italy–India Economic Observatory. The treatment applicable to a transaction depends on the exact customs classification, origin and implementation date.
The FTA opens the market — but not in the same way for every product
India is expected to eliminate tariffs eventually on 91% of industrial tariff lines, with more than half becoming duty-free at entry into force. The aggregate figure, however, does not determine the treatment of an individual product.
Two products in the same industrial sector may have different tariff-reduction schedules, final tariff rates, rules of origin, certification requirements and commercial routes to the customer.
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Tariff-reduction schedules
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Rules of origin
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Final tariff rates
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Certification requirements
Find the sector closest to your product
The sectors below are the commercial entry points used by the Italy–India Economic Observatory. The product families are representative, not exhaustive. Product-level FTA treatment must be confirmed against the applicable tariff line.
Space, Aerospace & Defence
Aircraft, helicopters, drones and parts; radar and radio-navigation equipment; navigation instruments; commercial and naval vessels; floating structures; armoured and defence-related equipment.
FTA PROFILE: PROGRESSIVE OPENING AND REGULATED ACCESS.
Tariff reductions can improve selected industrial flows, but they do not create automatic access to strategic programmes, defence procurement or activities subject to licensing.
Machinery
Pumps, valves and compressors; packaging and bottling machinery; machine tools and metalworking equipment; plastics and rubber machinery; textile and printing machinery; industrial furnaces and welding equipment.
FTA PROFILE: BROAD AND PROGRESSIVE OPENING.
Machinery is one of the strongest opportunities for Italian industry, but the year in which the tariff reaches zero differs materially across product
families.
Pharmaceuticals & Medical
Medicaments and pharmaceutical preparations; vaccines, blood and immunological products; vitamins, hormones, alkaloids and antibiotics; diagnostic products; medical, surgical and dental instruments.
FTA PROFILE: PROGRESSIVE OPENING AND HIGH REGULATION.
Authorisations, product registration, testing, quality systems and conformity remain central to effective market access.
Environmental Transition
Water and air filtration and purification systems; industrial furnaces and incinerators; spraying and fire-extinguishing equipment; environmental-analysis instruments; waste- and sludge-related products.
FTA PROFILE: BROAD OPENING.
The tariff opportunity must be assessed together with technical standards, conformity requirements and the qualification process applicable to the end project.
Agri-food Technologies
Soil-preparation and harvesting machinery; tractors; grain-cleaning and milling machinery; dairy equipment; food- and beverage-processing machinery; agricultural and poultry equipment.
FTA PROFILE: NUMEROUS EARLY OPENINGS.
The commercial benefit also depends on installation, training, technical assistance and the ability to serve customers locally.
Chemicals
Organic and inorganic chemicals; specialty chemicals;
fertilisers; dyes, pigments, paints and coatings; surfactants and detergents; catalysts and reagents; lubricants, adhesives and enzymes; polymers.
FTA PROFILE: ONE OF THE BROADEST OPENINGS.
Classification, composition, origin, intended use and the applicable product regime remain decisive.
Energy Transition
Boilers and turbines; electric motors and generators;
transformers, converters and inverters; batteries; switchgear and control panels; photovoltaic cells; insulated cables; hydrogen-related products.
FTA PROFILE: DIVERSIFIED OPENING.
Products in the same energy value chain may follow different tariff schedules and may face different certification, origin and localisation requirements.
Infrastructure & Construction Technologies
Construction, earthmoving, lifting and handling equipment; mining and mineral-processing machinery; railway components; steel tubes and structures; prefabricated structures; aluminium structures.
FTA PROFILE: BROAD OPENING; SELECTIVE ACCESS TO PROJECTS.NUMEROUS EARLY OPENINGS.
Lower tariffs do not replace qualification with project owners, consultants, EPC contractors, developers and procurement organisations.
Automotive & Components
Passenger and commercial vehicles; special-purpose vehicles; motorcycles; vehicle parts and components; engines and engine parts; ignition and electrical equipment; tyres; CKD-related products and EV components.
FTA PROFILE: MANAGED ACCESS.
Quotas, price bands, propulsion technology, complete vehicles, kits and components are treated differently and follow different timelines.
Tariffs are only one part of
market access
Understanding the FTA benefit for a specific product requires verifying five interdependent conditions before preferential treatment can be claimed.
Classification
What is the exact customs code of the product?
Preferential origin
Does the bill of materials and production process satisfy the relevant origin rule?
Conformity
Are BIS certification, Quality Control Orders, testing, registration or other approvals required?
Commercial model
Will the product be exported, assembled, manufactured locally or supplied through an Indian or European partner?
Services and mobility
Are installation, maintenance, engineering or temporary movement of technical personnel
essential to delivery?
What we review during the FTA Impact Call?
During an initial 25-minute discussion, the IICCI team collects the information required to frame:
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the product and possible customs classification
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the direction of the commercial flow
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the indicative tariff-reduction profile
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the principal origin conditions to be verified
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certification, registration or authorisation issues
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the route to market or local-production model
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whether a structured FTA assessment or market-development project is required
Note: The call is a preliminary business assessment. It does not replace a binding customs classification or transaction-specific legal, customs, tax or regulatory advice.
Issue 1 of the Italy–India Economic Observatory
Issue 1 examines the EU–India Free Trade Agreement product by product, connecting the negotiated tariff schedules with 2025 Italy–India trade data across all 14 Observatory focus sectors. The report distinguishes immediate tariff elimination, progressive schedules, partial reductions, exclusions, quotas and special regimes.
12,650
Indian tariff lines
14
Observatory focus sectors
9,728
European tariff lines
13
IICCI commercial macro-categories
2025 Italy–India trade data connected to the negotiated tariff schedules across all sectors.
From FTA analysis to market development
1
FTA Impact Assessment
Product classification, tariff path, origin screening and initial mapping of market-access requirements.
Establish what changes, when it changes and what must be verified before claiming a preference.
4
Regulatory Coordination
Customs, certification, registration and specialist regulatory verification.
Coordinate product-specific checks with qualified specialists and responsible authorities.
2
Market Assessment
Demand, competition, pricing, channels and commercial viability.
Test whether lower border costs materially improve the market opportunity.
5
Local Establishment
Office, subsidiary, joint venture, localisation and operationalset-up.
Support companies whose optimal model goes beyond direct exports.
3
Partner Search & Business Matching
Customers, distributors, industrial partners, service providers and relevant stakeholders.
Identify and qualify the organisations needed to execute the market strategy.
60 YEARS at the Centre of Indo-Italian Relations
IICCI – The Indo-Italian Chamber of Commerce and Industry is an association of businesses and professionals recognised by the Ministry of Enterprises and Made in Italy and associated to Assocamerestero. Its mission is to promote trade exchanges and industrial relations between Italy and India.
With over 700 member companies, 30 professionals, 7 offices across major Indian cities and 2 representative offices in Italy, IICCI serves as a key platform for public and private sector stakeholders.
IICCI operates in India in close coordination with the Embassy of Italy in New Delhi and Consulate General of Italy in Mumbai, Bengaluru and Kolkata; SACE and SIMEST, as well as Confindustria-affiliated industry associations such as Amaplast and UCIMU.
60
Years of Excellence
700+
Members
7+2
Offices in India + Italy
30
Professionals
€15 bn
Bilateral Trade Supported
200+
Initiatives Organised
15
Partner Institutions
13
Focused Sectors
Key clarifications on the FTA status, product treatmentand IICCI support scope.
Is the EU-India FTA already applicable?
The EU-India FTA, following the conclusion of negotiations in January 2026, is currently progressing through the necessary approval and ratification procedures. Its implementation is expected to create new opportunities for bilateral trade, investment and market access.
Is knowing the sector sufficient?
No. The applicable treatment depends on the specific customs classification and, in many cases, on the underlying eight-digit tariff line.
Does an Italian product automatically qualify for the EU preference?
No. The product must satisfy the applicable rule of origin and be supported by the required evidence.
Does the FTA remove BIS certification and Quality Control Orders?
No. Tariff reductions do not automatically remove technical standards, product certification, registration or conformity requirements.
Can IICCI support an Indian company entering Italy or the EU?
Yes. Support may include market assessment, regulatory orientation, partner search, establishment and commercial development in Italy.
What information should we prepare for the call?
A clear product description, HS code if known, current or expected trade direction, approximate annual value, production origin and the main market-access issue.
SITEMAP
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