Indian IT/ITES industry to gain from EU–India FTA, says industry body Nasscom
ADVERTISEMENT
Hailed by both India and the EU as the ‘Mother of all deals’, IT and ITES industry representative body Nasscom expects the technology sector to be a major beneficiary of the recently concluded free trade agreement (FTA).
In a prepared statement, Nasscom said that the services sector would gain from the opening up of markets and also bring about rules-based predictability.
"Services being the dominant and faster growing part of both economies, the gains would be in the form of better EU market access for Indian tech. This could lower non-tariff barriers and ease cross-border delivery. Digital trade rules to support businesses while protecting privacy, security, and public policy. Indian IT firms stand to gain from greater opportunities in Europe, including easier cross-border provision of services (Mode 1 under GATS) and potentially improved mobility for professionals (though Mode 4),” said the statement issued by Nasscom .
Given the geopolitical challenges, especially with India facing 50% tariffs on exports to the U.S.—the Indian IT sector‘s largest revenue base—Nasscom expects the FTA to diversify markets for Indian IT exporters by providing a hedge against global trade uncertainties, while strengthening the country’s position in global value chains for digital services.
January 2026
Netflix, which has been in India for a decade, has successfully struck a balance between high-class premium content and pricing that attracts a range of customers. Find out how the U.S. streaming giant evolved in India, plus an exclusive interview with CEO Ted Sarandos. Also read about the Best Investments for 2026, and how rising growth and easing inflation will come in handy for finance minister Nirmala Sitharaman as she prepares Budget 2026.
“The agreement fosters deeper EU-India ties in technology, innovation, and digital areas (building on the India-EU Trade and Technology Council). This could lead to more EU investment in India's IT ecosystem, joint ventures, R&D in AI, semiconductors, cleantech, and startups. Indian IT companies could benefit from technology transfer, cocreation, and expanded partnerships,” the statement further said.
While the detailed draft text is awaited, industry experts see this having a positive impact on the services sector.
Karthik Mani, Partner & Leader - Indirect Tax: South, Tax & Regulatory Advisory, BDO India, sees the FTA securing strong commitments from the EU across key sectors, including IT and IT-enabled services alongside creating significant opportunities for Indian technology companies to expand their export footprint.
“In particular, provisions related to the movement of independent professionals in areas such as R&D, education services, and computer and computer related services will enable Indian specialists to access a broader range of clients across EU member states. This is expected to enhance cross-border service delivery, deepen professional engagement, and strengthen India’s presence in high value knowledge sectors within the EU market," he said.