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, calling it a “wholesale surrender” of India’s economic interests. In a statement, the Polit Bureau said the agreement would severely damage key domestic industries and undermine the livelihoods of workers, farmers, and small producers.

According to the CPI(M), India has agreed to eliminate or sharply reduce tariffs on more than 90% of goods imported from the EU, including major cuts on automobiles (from 110% to 40%), iron and steel (22% to 0%), pharmaceuticals (11% to 0%), wines and spirits (150% to 40%), processed foods (50% to 0%), and sheep meat (33% to 0%). Such deep tariff reductions, the party argued, would adversely affect the automobile, pharmaceutical, machinery, and electrical sectors, with the EU projecting its exports to India to rise by over 107% in the coming years.

The party said the benefits such as cheaper cars and wines would accrue only to affluent consumers while the broader impact of increased imports would threaten employment and destabilise domestic manufacturing.

The CPI(M) also criticised the FTA’s alignment with the India–Middle East–Europe Economic Corridor (IMEC), which designates Israel’s Haifa port as a key transit point. At a time when global calls are growing to sanction Israel over its actions in Gaza, the party said, the Indian government was “deepening ties” instead.