India’s EU trade rebalances with strong gains in Spain and steady demand in Germany

India’s export footprint in Europe is quietly but steadily shifting, with newer markets in the European Union (EU) stepping up as reliable growth engines even as traditional partners hold firm. Latest commerce ministry data point to Spain, Germany, Belgium and Poland emerging as key and stable destinations for Indian goods within the 27-nation bloc, reflecting a more diversified and balanced export strategy. 

Among these, Spain has stood out as a breakout market. Indian exports to the country surged by more than 56 per cent during April-November of the current fiscal, climbing to $4.7 billion from $3 billion in the same period last year. This sharp rise has also translated into Spain’s share in India’s total exports increasing to 2.4 percent, a gain of 0.5 percentage points — the highest share increase recorded among European partners during the period. 

Germany, India’s largest export destination in Europe, continues to provide stability rather than headline-grabbing growth. Shipments to the country rose 9.3 percent to $7.5 billion during the eight-month period, up from $6.8 billion a year earlier. With a 2.6 percent share in India’s total exports and a positive share gain of 0.2 percentage points, Germany remains a dependable market for Indian products, according to officials. 

Belgium and Poland, though smaller in absolute terms, have also shown resilience. Exports to Belgium edged up to $4.4 billion from $4.2 billion during April-November 2025-26, while shipments to Poland grew 7.6 percent to $1.82 billion from $1.69 billion in the corresponding period of the previous fiscal. 

Officials say the combined trend underscores a nuanced European strategy for Indian exporters. Rapid growth in Spain, steady expansion in Germany and sustained demand in Belgium and Poland indicate a mix of market diversification and consolidation in mature economies. “These patterns reflect a balanced export profile at a time when global demand remains uneven,” an official noted. 

The improving export momentum comes as India and the EU continue negotiations on a long-pending free trade agreement (FTA), which is expected to lend further impetus to bilateral trade despite global economic uncertainties. In 2024-25, India’s bilateral trade in goods with the EU stood at $136.53 billion, with exports valued at $75.85 billion and imports at $60.68 billion, making the bloc India’s largest trading partner for goods. 

Currently, the EU accounts for around 17 percent of India’s total exports, while shipments to India make up about 9 percent of the bloc’s global exports. Sectors such as ready-made garments, pharmaceuticals, steel, petroleum products and electrical machinery are likely to become more competitive if the proposed trade pact is finalised, potentially strengthening India’s foothold in one of its most important overseas markets. 

At the same time, India is also pushing to deepen trade ties with the United States, its single largest export destination. While a comprehensive free trade agreement still remains off the table for now, both sides are engaged in talks to expand market access, resolve long-standing tariff and regulatory issues, and strengthen cooperation in areas such as critical minerals, digital trade and supply chains.

(With input from PTI)