Table of Content
Introduction
On January 27, 2026, the leaders of India and the European Union stood together in New Delhi and announced something that took 19 years to happen. The India–EU Free Trade Agreement – called, without irony, “the mother of all deals” – is now done. And if you import home decor, furniture, textiles, or handicrafts from India into Europe, your cost structure will never be the same.
Here’s what you actually need to know – no political commentary, no economics lecture. Just the numbers, the rules, and how to make sure your business is positioned to benefit.
2B
India + 27 EU nations~25% of global GDP
99%
BY trade value
74
on entry into force
19
India-EU Summit, New Delhi
€0
India-EU Summit, New Delhi
Why This Hits Different for Home Decor Buyers
Before this deal: India had lost EU GSP (Generalised Scheme of Preferences) benefits in 2023, meaning many product categories had reverted to MFN (Most Favoured Nation) duty rates – up to 12% on textiles and 6–7% on ceramics and metalware. The FTA wipes that out. Immediately on entry into force, most of your home decor categories move to zero.
The duty shift on Indian textiles, handicrafts, and home decor entering the EU.
On a €500,000 order, that’s €60,000 back in your margin per year.
The Tariff Journey: Before, Between, and After
The Rules of Origin: How to Claim Your 0% (Don't Skip This)
Zero duty doesn’t apply automatically. To claim preferential tariff treatment under the FTA, your goods must meet the Rules of Origin (RoO) requirements. For most home decor and handicraft categories, this means demonstrating 35% value addition in India.
What “35% value addition” means in plain English:
At least 35% of the final product’s value must be created in India through manufacturing, craftsmanship, or processing. For products like brass metalware, block-printed textiles, hand-knotted rugs, and solid wood furniture – all made by Indian artisans using Indian materials – this is almost always satisfied automatically. But you need the paperwork to prove it.
Get a Certificate of Origin (CoO)
Your Indian supplier (or buying agency) issues a formal CoO from EPCH, EPC, or designated customs authorities, certifying Indian origin and value addition. This document travels with your shipment.
Verify the value addition calculation
The 35% threshold is calculated as: (FOB value − cost of non-originating inputs) ÷ FOB value ≥ 35%. For artisan home decor with predominantly Indian raw materials, this is almost always well above 35%.
Declare at EU customs
Present the CoO to your customs agent at the port of entry. They apply the FTA preferential duty rate. Without this declaration, you pay full MFN rates – even if the product qualifies.
India vs China for Home Decor: The New Maths
What You Should Do Right Now
One more thing worth knowing: India also concluded an FTA with the UK in July 2025. If you’re a UK importer, the same duty elimination logic applies — and the UK deal is already signed and ratified. The EU deal is on the same trajectory.
The India–EU FTA took 19 years. It arrived at the exact moment when global supply chains needed a trusted, large-scale alternative to China. Artisanal quality. 0% duty. No anti-dumping exposure. A $27 trillion market. The deal that was always supposed to happen has happened.
The only question is whether your sourcing strategy is ready to take advantage of it.
Build Your India Sourcing Programme Before the Rush
Azoonis works with European and US importers to build India sourcing programmes that are compliant, cost-efficient, and ready for the FTA era. Let’s talk about what this means for your margins.
