After nearly twenty years of negotiation rounds and pauses, the European Union and India have concluded negotiations on a Free Trade Agreement (FTA), marking one of the EU’s most consequential trade deals with a major emerging economy.
As with most EU trade agreements, the political conclusion of negotiations is typically followed by legal scrubbing, signature, and ratification procedures before full entry into force. For Indian exporters, investors, and business founders, the deal matters for two reasons:
- Direct market access between India and the EU (tariffs, rules of origin, and services market access).
- A strategic opportunity: using an EU foothold (often via the Netherlands) to leverage the EU’s Internal Market freedoms under the Treaty on the Functioning of the European Union (TFEU), especially the free movement of goods and services.
Trade liberalisation
The FTA aims to cut tariffs on most goods traded between the EU and India, improving price competitiveness and predictability for both exporters and importers. The European Commission and press reporting indicate that tariff elimination or significant reductions cover around 96%+ of traded goods by value, with estimated duty savings for EU exporters in the range of €4 billion per year.
The agreement reportedly targets broad industrial sectors (e.g., machinery, chemicals, vehicles, steel), while taking a more cautious approach in certain sensitive areas, particularly agricultural food.
Practical point for Indian exporters: a tariff cut is only one part of “real” market access. EU product compliance, conformity assessment, labelling, and sector rules remain essential to plan for, especially where harmonised EU standards apply.
Expanding access for services and SMEs
Beyond goods, the deal is presented as a significant step in services liberalisation and regulatory predictability (licensing, local presence requirements, and related governance rules).
This matters because, for many Indian businesses, the fastest scaling path into the EU is not only exporting products, but also providing:
- IT and digital services
- consulting and engineering services
- maritime and logistics services
- financial and professional services (subject to licensing)
The agreement also includes a focus on SMEs, that it intends to make the deal usable in practice such as setting up clearer guidance, contact points, and practical trade information.
How the TFEU (Treaty on the Functioning of the European Union) Internal Market freedoms can benefit Indian investors
The Netherlands, as one of the European Union member state, is subject to the EU law when it comes to the European Communities, as known as the first pillar of the EU law, which include the jurisdictions on matters of economic, social, and environmental policies. The Court of Justice of the EU (CJEU) had full jurisdiction here. The compliance with the EU law ensures the uniformity and operation of the European single market. Under the newly sign EU-India FTA, exporters, investors, and business founders from India are expected to enjoy and be protected by the EU law, and will be further explained as follows.
The TFEU freedoms are EU law rights, but they attach to EU market operators
Indian citizens do not automatically obtain EU free movement rights as persons. However, an Indian owned business established in an EU Member State can generally rely on EU Internal Market rules when trading cross border within the EU (subject to sector regulation, public interest exceptions, and compliance requirements).
- Free movement of goods (TFEU articles 34 – 36)
Within the EU Internal Market, restrictions and measures having equivalent effect on imports between Member States are prohibited, subject to limited exceptions (e.g., public health, public policy, consumer protection, environment). The free movement of goods matters commercially because once goods are lawfully placed on the EU market (and customs formalities completed where relevant), distribution can often be scaled across the EU without “re-starting” market entry country by country, because the EU legal framework is designed to prevent unjustified national barriers.
- Freedom to provide services (TFEU Article 56)
EU law also protects the ability to provide services across borders within the EU, again subject to justified restrictions. If your EU hub is in the Netherlands, you can often structure projects, contracting, and delivery for clients in other EU Member States with fewer legal obstacles than under a purely “third country exporter” model, particularly when the provider is established in the EU and the service is delivered cross border.
- The combined “FTA + EU hub” strategy
For many Indian companies, the most powerful structure is to use the EU-India FTA to reduce friction on India EU flows, while using an EU establishment (for example, a Dutch B.V.) as a distribution, contracting, IP, or headquarters vehicle to scale across the EU Internal Market.
Be aware that this is not one size fits all approach. Several factors would result in a different approach depending on your sector, supply chain, VAT and customs planning, regulated activities, and immigration options for founders and key staff. For details our professional lawyers’ team at Amice Advocaten will assist you to set up the best suited solution.
Why the Netherlands is often an excellent EU base for Indian investors
Many EU Member States can function as an entry point. The Netherlands is frequently chosen because it combines practical infrastructure with a business oriented legal framework:
Flexible corporate vehicle: the Dutch B.V.
The Dutch private limited company (in Dutch: besloten vennootschap; or B.V.) is designed to be accessible and investor friendly. Dutch government guidance emphasises that a B.V. requires almost no capital, can take on investors, and provides limited liability (with the usual director liability exceptions).
Straightforward setup and registration mechanics
For incorporated entities like a B.V., incorporation is typically done via a Dutch civil law notary, after which registration with the Business Register triggers information flow to the tax administration through standard processes. A clear delineation of duty and responsibility of each shareholder is essential. Before you visit the Dutch notary, Amice Advocaten provides an all-round care of drafting a well-prepared article of associations in order to prevent future business disputes among shareholders.
Strong fundamentals for foreign direct investment
Public sources consistently describe the Netherlands as a major recipient of foreign direct investment, supported by infrastructure, workforce, and an internationally oriented economy.
Practical operating advantages
Depending on your business model, the Netherlands can be particularly attractive for:
- logistics and distribution (EU connected infrastructure and gateway function)
- English language business environment and internationally experienced workforce
- legal certainty and mature commercial courts and arbitration culture
- EU positioning: an EU base that supports EU wide contracting and service delivery
(N.B.: exact advantages depend on sectors and locations. This should be framed as a case by case assessment after having a consultation with Amice Advovaten.)
Immigration channels to the Netherlands for founders and key staff
Below are three routes that frequently match the profiles of Indian professionals and entrepreneurs to reside and work in the Netherlands
European Blue Card (Europese blauwe kaart)
The European Blue Card is a residence permit for highly educated migrants working in the Netherlands. The IND explains the permit and requirements, and publishes the applicable income thresholds. Further explanations can be found in this article.
Highly Skilled Migrant (kennismigrant)
The kennismigrant (Highly Skilled Migrant) route is widely used by Dutch employers that are recognised sponsors with the IND, allowing a streamlined process for hiring international talent. It is important that the applicants meet the statutory salary amounts to be qualified as a highly skilled migrant. Further explanations can be found here.
Self-employment (arbeid als zelfstandige)
For entrepreneurs, the Netherlands has a self employed residence permit, where the business must serve an “essential interest” to the Dutch economy and is assessed using a points based system (with RVO advice playing a key role). If your business is innovative start-up is also a good alternative. More information can be found on our webpage to know more about the application requirements and differences between Dutch self-employment visa and start-up visa.
Great news is that under these work visas, family reunifications are possible for spouse, unmarried partner, and children of the applicants. As a family member, they enjoy the healthcare and education system in the Netherlands, and often the same labour rights as the work visa holders themselves. More information about the family reunification visas in the Netherlands can be found here.
Conclusion: turning trade access into a scalable EU strategy
The EU–India Free Trade Agreement is more than a tariff story. For many Indian businesses, the real opportunity is to combine improved India–EU trade conditions under the FTA, with an EU operating base that leverages the EU Internal Market freedoms for goods and services under the TFEU.
The Netherlands is often a natural choice for that EU base due to the flexibility of the Dutch B.V., practical establishment pathways, and a long track record as a hub for international investment. If you are planning to move to the Netherlands or the EU through the newly signed EU-India FTA, or if you would like to explore the opportunities under this FTA, please feel free to contact our office via telephone number 030 2300 230 or e-mail at: info@amice-advocaten.nl
Amice Advocaten was founded in 2008 and is located in Utrecht, the Netherlands. Amice Advocaten specializes in providing professional legal and consulting services to companies and individuals in the Netherlands, including immigration law, labour law, property law, tenancy law, company law and other civil law areas.