EU and India finalize trade agreement: what it means for Bulgarian business and enterprises in the Ruse region

On 27 January 2026, the European Union and India announced the conclusion of negotiations on a comprehensive free trade agreement, which is expected to reduce tariff and non-tariff barriers between two markets with a combined population of nearly 2 billion consumers. The focus is on easier market access, predictability for companies and accelerating bilateral trade and investment.

What has been agreed at this stage?

According to information from the European Commission and the official pages on EU-India trade relations, the agreement includes:

• Elimination or reduction of duties on over 96% of EU exports to India (by value), with anticipation EU exports to India to double by 2032.
• Expected savings of around 4 billion euros per year from customs duties for European companies.
• A broader framework for cooperation, including under the EU-India Strategic Partnership, with a focus on sustainability, technology and innovation.

It is important to note that after the announcement of the conclusion of negotiations, there is usually legal-linguistic revision and approval/ratification procedures under EU and Indian rules before the agreement enters into force.

Benefits and opportunities for businesses in Bulgaria

1) More competitive exports to a fast-growing market

India is a market with scale and strong consumer and industrial dynamics. Reduced tariffs and clearer rules could create the conditions for:

• better price competitiveness of Bulgarian and European products;
• more predictable costs upon entry and expansion of sales;
• easier planning of deliveries and distribution to South Asia.

2) Sectors with potential for companies from Ruse and the region

In practice, the most tangible effect for local businesses usually comes in industries where customs duties and regulatory requirements are a significant component of the final price and delivery time. For businesses in the Ruse region and the wider Bulgarian economy, this is particularly relevant for:

• Mechanical engineering and industrial equipment (machinery, components, subcontracting), where the EU explicitly emphasizes the elimination/reduction of customs duties for a wide group of goods.
• Electronics, electrical engineering and industrial solutions, including integration into European and Indian supply chains.
• Chemicals, pharma and medical devices, which are among the goods cited in international summaries as benefiting from tariff reductions.
• Value-added foods and beverages, where relief is expected for certain product groups (as the framework and exceptions are important for the specific product category).

3) Strategic effect: diversification of markets and risks

Many companies are looking for diversification beyond traditional markets. International analyses also place the agreement in the context of broader changes in global trade and industrial policies. For Bulgarian SMEs, this could mean new growth channels, but also higher requirements for compliance, quality and sustainability.

What should companies do now?

1. Map the product portfolio: which products/services have potential for India and which fall into the groups with expected tariff relief.
2. Check regulatory requirements (standards, labeling, certifications, registration regimes), because non-tariff barriers are often decisive.
3. Assess the impact of sustainability and carbon policies: according to international sources, the CBAM mechanism remains in force, which is important for energy-intensive sectors and materials.
4. Plan partnerships: local distributor, agent, industrial partner or participation in B2B formats, as an entrance to the market.

The Ruse Chamber of Commerce and Industry will continue to monitor official publications and clarifications on the agreement and will inform businesses about key parameters, deadlines and practical business guidelines.