At a macro level, the deal preserves India’s historic trade surplus with the EU and paves the way for export growth to one of the world’s largest consumer blocs. The structural provisions also extend to the services sector, with guaranteed access to 144 service sector sub-sectors, boosting labor and skill-intensive segments.The Capital Goods and Technology sectors are positioned to benefit substantially. Historically hampered by tariffs of up to ~22% on exports to EU markets, Indian capital goods producers will benefit from preferential or duty-free access. At the same time, liberalized imports of high-tech intermediate goods from EU partners could reduce input costs and deepen integration into global value chains.
The metal and mining sectors are also seeing a clear increase; Zero tariffs across all tariff lines break significant cost barriers for Indian steel and minerals exports, increasing competitiveness in high-value European markets. While EU-specific non-tariff measures, such as carbon adjustment mechanisms, remain in place, the elimination of tariffs strengthens the long-term predictability of trade partnerships.
In IT and services, expanded access to the EU provides important diversification beyond traditional markets. With the structural support of the FTA, service providers can promote deeper integration into European demand, especially in the field of technology-related and digital services.
Auto and automotive OEMs will get phased tariff reductions, although the impact on price sensitivity will be mitigated by prevailing demand profiles; Abolishing export duties opens up new opportunities for Europe. Segments such as pharmaceuticals and consumer durables see a neutral to modest impact given limited tariff shifts or entrenched trade patterns, while Defense sees potentially positive impacts from lower costs of certain imports and new export horizons in the long term.
Smaller, labor-intensive sectors – textiles, leather, agriculture, chemicals, gemstones and jewelry – will benefit from the elimination of import duties and broader market access, strengthening the export-oriented growth momentum under the FTA.
Overall, the India-EU FTA restructures competitive structures in key industrial clusters, entrenching tariff-based benefits and access to services that can support export expansion and value chain participation across all sectors.
Jindal stainless TP-990
Jindal Stainless is structurally well positioned to capitalize on strong domestic demand for stainless steel, expanding value-added product offerings and strategic inorganic growth in CR and downstream capabilities. Management’s focus on cost efficiency and VAP expansion strengthens long-term margins and market positioning. Revenue for Q3 2026 was INR 105 billion (-7% vs. estimate) with on-line EBITDA of INR 14 billion and APAT of INR 8.6 billion (+31% YoY, +9% QoQ). Strong volumes (+11% YoY) and moderate input costs offset lower ASPs, while EBITDA/ton improved 6% YoY to INR21,665. Exports remained weak due to CBAM-related delays. Looking ahead, Q4’26 earnings are expected to benefit from higher nickel prices, ASP recovery and a revival in exports. For FY26-28E, project revenue CAGR is estimated at ~13% and EBITDA CAGR at ~15% (~INR22,000/ton), supported by SMS Indonesia commissioning and downstream expansions, low leverage and strong cash flow generation.
Bharat Electronics TP-500
Bharat Electronics continues to strengthen its leadership in defense electronics in India, supported by strong execution and a resilient order pipeline. In Q2 26, the company reported a robust by-the-numbers result – revenue increased 26% year-on-year, EBITDA margin improved to 29.4% and PAT grew 18% year-on-year – thanks to superior cost management and project execution. The order book stood healthy at INR 746 billion, with premium income more than doubling year-over-year. The management reaffirmed its long-term export strategy, targeting an increase from 3-4% of sales to 5% in the next 2-3 years, eventually reaching 10% of total sales, led by key programs such as QRSAM, Project Kusha and next-generation corvettes. With growing system integration capabilities, a strong export order book and visibility of major defense projects, we expect steady growth.
(The author is Siddhartha Khemka, Head of Research – Wealth Management, Motilal Oswal Financial Services)
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