France Pushes State Workers Off Zoom as Europe Moves Toward Tech Sovereignty

In a significant development on February 3, 2026, India and the United States announced a major bilateral trade agreement aimed at resetting trade relations that had been strained over the past year. The announcement came after a telephone conversation between Prime Minister Narendra Modi and U.S. President Donald Trump, with both leaders describing the pact as a breakthrough in economic cooperation and an important step toward strengthening ties between the world’s two largest democracies. At the heart of the agreement is a sharp reduction in reciprocal tariffs on Indian goods entering the U.S. market. Washington has agreed to cut tariffs from previous levels- which reached an effective 50 % after punitive levies linked to India’s purchase of Russian crude -down to around 18 % for a broad basket of Indian products. This move is expected to improve cost competitiveness for Indian exporters and restore price parity with competitors such as Thailand, Indonesia and Bangladesh. In return, India is set to reduce or eliminate tariffs and non-tariff barriers on certain U.S. goods, with multiple reports indicating a move toward zero duty on several categories, opening Indian markets to U.S agricultural products, technology, energy and manufactured items. The deal also involves broader commitments on energy sourcing, with India signalling a reduction in Russian oil purchases and increased imports from the U.S. and other partners. The agreement effectively reverses the sharp tariff escalation of August 2025, when Washington imposed punitive levies that had significantly raised export costs for Indian goods and triggered market uncertainty. Sectors such as textiles, engineering goods, auto components, gems and jewellery and leather among others had seen order volumes decline due to heightened duties. Experts believe the tariff reset will provide relief to these industries and support a rebound in export volumes in 2026. Market and Economic ImpactThe trade announcement triggered an immediate positive response in Indian financial markets. The rupee strengthened sharply, marking its largest single-day gain in over seven years against the U.S. dollar, while benchmark indices surged, with the Nifty 50 and BSE Sensex both posting strong gains. Investor confidence was boosted by the removal of trade uncertainty after months of tariff volatility. Trade bodies and industry associations welcomed the reset. The Engineering Export Promotion Council (EEPC India) highlighted that lower tariffs will enhance competitiveness, especially in engineering export segments. Exporters of rice and other agricultural commodities also expressed optimism about improved market access and shipment prospects under the new tariff framework. Government Reactions and CommentarySenior Indian leaders framed the agreement as a historic achievement. Commerce Minister Piyush Goyal described the pact as a “landmark trade agreement” between two fair-trading democracies expected to benefit farmers, MSMEs, entrepreneurs, skilled workers and exporters across sectors. External Affairs Minister S Jaishankar noted that the deal will stimulate jobs, growth and innovation, reinforcing India’s “Make in India for the world” agenda. Finance Minister Nirmala Sitharaman also welcomed the tariff cut as “good news for #MadeInIndia products,” thanking both strategic partners for the development. Leaders across India’s political spectrum, including state officials, highlighted the potential economic gains, though some opposition voices have sought greater transparency on the terms and long-term implications of the pact. Key Features of the Trade DealReduced U.S. tariffs: Indian exports to the U.S. now face an 18 % tariff rate, down from previous levels that included punitive levies. Improved market access: India is expected to reduce tariffs and non-tariff barriers on several U.S. goods, including agriculture and energy products, enhancing bilateral trade flows. Energy and sourcing commitments: India has signalled a shift away from heavy reliance on Russian oil, pledging increased purchases from the U.S. and other suppliers. Broader cooperation: The agreement lays the groundwork for deeper economic engagement across sectors such as technology, defence, agriculture and services, and may serve as a precursor to a more comprehensive future trade pact. The India-U.S. trade deal of February 2026 represents one of the most consequential developments in bilateral economic relations in recent years recalibrating tariff structures, restoring investor confidence and charting a path for stronger long-term cooperation between two of the world’s fastest-growing major economies.Join SEINET — the digital partnership ecosystem for tech businesses and leaders in EU-UK and India.Start with a verified community, and unlock access to the exclusive Leaders Network for qualified founders and decision-makers. Build trusted partnerships and collaborate efficiently across markets www.startupeuropeindia.net

The recently concluded India-European Union Free Trade Agreement (FTA) is poised to deliver a substantial boost to India’s pharmaceuticals and medical technology industries by opening access to the EU’s $572.3 billion pharmaceuticals and medical devices market one of the largest markets of its kind globally.Government and industry sources say the agreement will enhance export opportunities, scale up market reach and strengthen India’s role as a global supplier of affordable medicines and health technologies.Under the new trade framework, tariffs on a wide range of pharma and medtech products are being reduced or phased out, offering near-zero duty access to European markets and improving competitiveness for Indian manufacturers. While Indian generic drugs historically entered the EU duty-free, the FTA’s preferential terms and deeper market integration are expected to benefit bulk drugs (APIs), formulations and complex therapeutics as well as medical devices and surgical equipment.Industry analysts highlight that the agreement’s tariff cuts including elimination of duties of up to 11 per cent on pharmaceuticals and up to nearly 28 per cent on medical devices will strengthen Indian firms’ cost position and make high-quality products more price-competitive in Europe’s highly regulated markets. Indian exporters already serve about 19 per cent of their pharma export markets in the EU, but the FTA can accelerate growth across high-value segments such as biosimilars and specialty drugs.Beyond tariffs, the deal also addresses non-tariff barriers and regulatory cooperation, which are critical in healthcare product trade. Improved transparency, customs facilitation and steps toward regulatory alignment are expected to reduce compliance costs, shorten market entry timelines and help smaller manufacturers participate more actively in exports. Experts believe that these structural improvements could drive employment growth, encourage investment in manufacturing capacity and support micro, small and medium enterprises (MSMEs) within India’s pharma ecosystem.The agreement may also lower drug and medical equipment costs for Indian consumers over time as imported inputs and advanced technologies become more affordable. This includes specialised imaging equipment, diagnostic devices and high-end therapeutics that currently attract higher duties and regulatory costs. European firms may also expand their investment in India’s research-based pharmaceutical and medtech sectors, fostering deeper innovation collaboration.This could accelerate innovation across biopharma, biosimilars, advanced medical technologies and digital health solutions, reinforcing India’s growing international stature in healthcare manufacturing and exports.As the pact moves toward ratification by the European Parliament, EU member states and India’s Cabinet, stakeholders are preparing for phased implementation that could reshape global healthcare trade, strengthen supply chains and support affordable access to quality treatments worldwide.

The European Union and India have taken a decisive step toward strengthening their long-term economic relationship with the conclusion of negotiations on a comprehensive EU-India Trade Agreement.The deal is widely seen as a milestone in global trade, linking two major economic blocs at a time when supply chains, geopolitics and digital transformation are reshaping international commerce.The agreement aims to significantly expand bilateral trade by reducing tariffs, improving market access and creating a more predictable regulatory environment for businesses on both sides. With nearly two billion consumers combined, the EU–India trade corridor is positioned to become one of the most influential economic partnerships globally.A core focus of the agreement is tariff liberalisation. The EU has committed to removing duties on the vast majority of Indian exports, while India has agreed to phase out or reduce tariffs across a broad range of European goods.This is expected to unlock new growth for Indian exporters in sectors such as textiles, apparel, leather, gems and jewellery, engineering goods and marine products, while giving European companies greater access to India’s fast-growing domestic market.Beyond goods, the agreement places strong emphasis on services, investment and regulatory cooperation. India’s strength in IT and digital services, combined with Europe’s leadership in advanced manufacturing, finance and professional services, creates a framework for deeper integration of knowledge-driven industries. Simplified customs procedures, improved intellectual property protection and greater transparency are designed to make cross-border trade easier, particularly for small and medium-sized enterprises.Why the EU–India Trade Agreement MattersStrategic diversification: The pact helps both sides reduce dependence on single markets and build resilient supply chains amid global uncertainty.Market expansion: Indian and European businesses gain preferential access to large, high-value consumer markets.Innovation and services growth: The agreement supports collaboration in technology, digital services, clean energy and advanced manufacturing.Support for SMEs: Streamlined processes and clearer rules are expected to help smaller firms participate more actively in global trade.Sustainability also plays a role in the agreement, with commitments to labour standards, environmental protection and responsible business practices. Rather than acting as rigid conditions, these provisions create a platform for continued dialogue and alignment as both economies transition toward greener and more digital growth models.