EU FTA to Boost Exports and Danish Investment in India

India-EU FTA is expected to increase Indian exports to Denmark and encourage Danish investment in India, with opportunities spanning manufacturing, re-exports, technology startups and cross-border business.

The India-European Union Free Trade Agreement (FTA) is expected to increase Indian exports to Denmark and create opportunities for greater Danish investment in India, Danish Ambassador to India Rasmus Abildgaard Kristensen said on today. He highlighted the potential for companies from both sides to use India as a manufacturing and export base.

Speaking to ANI on the sidelines of the PAFI 13th Annual Forum 2026, Kristensen said the trade agreement could benefit Indian, Danish and other European companies by improving opportunities for cross-border trade and investment. He said Indian exports to Denmark could increase, while Danish exports to India are also expected to expand.

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The ambassador said the agreement could also encourage Danish companies to establish or expand manufacturing operations in India. Such investments could serve the Indian market while also allowing companies to manufacture products in India for re-export to European markets.

The European Commission’s factsheet on the EU-India FTA says the agreement covers a combined market of around two billion people. It also states that the pact is expected to reduce or remove tariffs across a large share of traded goods and create new opportunities for businesses in sectors including machinery and mechanical appliances, electrical equipment and agri-food products.

The agreement could also create opportunities for smaller businesses and technology startups. Kristensen noted that greater cross-border activity would increase the importance of intellectual property protection when companies enter new markets.

He specifically pointed to Indian technology startups expanding into Europe and Danish companies establishing operations in India. According to the envoy, the Indian and Danish governments are working to increase awareness among small and medium-sized enterprises about intellectual property protection and related considerations.

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The EU factsheet lists Danish exports to India at €2.871 billion in goods and services in 2025 and the total stock of bilateral Danish foreign direct investment in India at €1.873 billion in 2024. It also identifies opportunities for Danish businesses in sectors such as machinery, electrical equipment and agriculture.

Kristensen’s comments come as India and the EU advance implementation and business engagement around their trade agreement, with companies assessing opportunities arising from increased market access and investment links.