The European Union and India reached a comprehensive free trade agreement. The deal, that was signed on 27 January 2026, includes the gradual elimination of tariff barriers on more than 90 per cent of traded goods, a move expected to significantly facilitate bilateral trade.
Recovered paper, pulp, paper and board, as well as processed products such as packaging and printed materials classified under HS codes 47–49, are also included in the tariff agreement. In 2024, total EU imports of wood pulp, paper and board from India amounted to €249m, while EU exports of wood pulp, paper and board to India reached €1.07bn.
Initial sentiment within the EU paper industry regarding the efects of the free trade agreement with India is optimistic, although market observers also point to potential risks for the European market.
On the one hand, the EU-India trade agreement could - similar to the EU’s deal with the Mercosur countries - help offset negative effects of US tariff policy under President Donald Trump. For European companies, trade barriers will be reduced, potentially enabling producers to further expand exports of wood pulp and recovered paper as well as various grades of paper and board.
On the other hand, depending on the final design of the agreement, the European market could also become more accessible to Indian paper and especially board, as well as packaging and printed products - categories for which tariffs on Indian goods had previously been under discussion. Indian producers benefit from comparatively low production costs and show strong interest in expanding what have so far been relatively modest export activities to Europe, market experts told EUWID.
According to official figures, India’s paper industry has a production volume of nearly 20 million tpy and continues to grow. Overseas business is also becoming increasingly important. Most European countries have so far had only limited interaction with India in terms of imports. In export trade, however, recovered paper plays a significant role. In 2024, 2 million t or 3.8 per cent of total EU recovered paper exports were shipped to India. This represented the largest volume of recovered paper traded outside the Cepi region.
