CPI(M) slams India-EU FTA as ‘surrender of economic interests’

The Communist Party of India (Marxist) on Tuesday, January 27, 2026, strongly opposed the India-European Union Free Trade Agreement (FTA) signed earlier in the day, terming it as a “wholesale surrender” of India’s economic interests. The deal would severely harm key domestic industries and undermine the livelihoods of workers, farmers and small producers, the Polit Bureau said in a statement.

According to the CPI(M), India has imposed tariffs on more than 90% of goods imported from the EU, including major cuts on cars (from 110% to 40%), iron and steel (from 22% to 0%), pharmaceuticals (from 11% to 0%), wine and spirits (from 150% to 40%), processed foods (from 50% to 0%) and mutton (from 33% to 0%). agreed to remove or sharply reduce it. The party claimed that such deep tariff cuts would adversely affect the automobile, pharmaceutical, machinery and electricity sectors and predicted that EU exports to India would increase by over 107% in the coming years.

The party said benefits such as cheaper cars and wine would only reach wealthy consumers, while the wider impact of increased imports would threaten employment and destabilize domestic production.

The CPI(M) also criticized the FTA’s alignment with the India-Middle East-Europe Economic Corridor (IMEC), which has identified Israel’s Haifa port as a key transit point. At a time when global calls are growing for sanctions against Israel over its actions in Gaza, the Indian government is instead “deepening ties”, the party said.