New Delhi – Europe has emerged as a key lifeline for Indian exporters in November 2025, as merchandise exports to the region jumped 14.27% year-on-year to $7.9 billion, reversing the slump observed in October. The growth comes in the wake of a 50% additional tariff imposed by the United States on Indian goods, prompting exporters to shift focus to European markets.

According to government data, exports to Europe in October 2025 had dipped by 18.3% to $7.12 billion, reflecting a challenging global trade environment and the impact of trade disruptions with the US. However, November saw a broad-based recovery across all European geographies, signaling the effectiveness of India’s trade diversion strategy to mitigate losses from US tariffs.

Growth Across European Regions

Breaking down the numbers regionally, the European Union (EU) bloc remained the largest destination, with exports rising 16% to $6.3 billion in November. The European Free Trade Association (EFTA), comprising Norway, Switzerland, Iceland, and Liechtenstein, posted 16% growth to $135.24 million. Notably, India’s free trade agreement with the EFTA came into force in October 2025, which has likely contributed to the uptick.

Exports to the rest of Europe, including the United Kingdom, rose over 7% to $1.51 billion, following the signing of an India-UK FTA in July 2025, which is expected to be operationalised this year. Country-wise, the export performance was especially strong in Spain, Germany, Belgium, France, and the UK.

• United Kingdom: Exports increased from $958.29 million in November 2024 to $1.10 billion in November 2025, a 15.35% rise.
• Germany: Exports grew by 24.91% to $980 million.
• Spain: Registered a remarkable 180% jump to $893.47 million, reflecting strong demand for Indian goods.
• France: Exports rose by 65.7% to $735.24 million.
• Belgium: Recorded 31% growth to $525.61 million.

A commerce ministry official, speaking on condition of anonymity, stated, “India’s export performance in Europe continues to strengthen, with Spain, Germany, Belgium, and Poland emerging as stable and increasingly important demand centres.” He added that these markets demonstrate India’s competitiveness in value-added manufacturing and a diversified export portfolio.

European Markets Becoming Strategic for India

The share of key EU markets in India’s total exports increased from 5.5% during April–November 2024 to 6.3% during April–November 2025, highlighting Europe’s growing importance. Spain, in particular, has become a high-growth market, with exports surging from $3 billion in April–November 2024 to $4.7 billion in the same period of 2025, a robust 54.5% increase. Spain’s share in India’s total exports rose by 0.5 percentage points to 2.4%, the highest increase among European partners.

Germany continues to act as a steady anchor, reinforcing India’s integration into European value chains. Exports to Germany rose from $6.8 billion to $7.5 billion, a 9.3% increase, while its share in total exports gained 0.2 percentage points to 2.6%. Belgium, representing resilience and continuity, edged up from $4.2 billion to $4.4 billion, recording 5% growth, maintaining a 1.4% share in India’s total exports.

Poland has also emerged as a growing market in Central Europe, with exports increasing from $1.69 billion in April–November 2024 to $1.82 billion in April–November 2025, a 7.6% rise. The official noted that collectively, these trends point to a nuanced European strategy for Indian exports, balancing growth across mature and emerging markets.

India-EU FTA Negotiations

The ongoing India-EU trade negotiations have played a critical role in shaping export trends. Union Commerce Minister Piyush Goyal’s two-day visit to Brussels on January 8–9, 2026, was described as “significant” by the commerce ministry, marking a decisive step forward in concluding the India-EU Free Trade Agreement (FTA). If successfully implemented, the FTA is expected to further enhance market access for Indian goods across the EU.

Trade Diversion as a Response to US Tariffs

The growth in European exports follows the imposition of a 50% additional tariff by the US on Indian goods, including products linked to Russia. With the US imposing punitive measures, Indian exporters adopted a trade diversion strategy, seeking alternative markets to sustain revenues and maintain global competitiveness. Europe’s combined GDP, estimated at $31.48 trillion in 2026, with the EU accounting for $22.52 trillion, makes the continent a strategic trading partnerfor India.

The official noted that rapid growth in Spain, steady expansion in Germany, and resilience in Belgium reflect a balanced export profile, combining market diversification from traditional destinations and consolidation in mature economies. As India strengthens its manufacturing capabilities and supply reliability, these European markets are likely to anchor India’s long-term export growth across the region.

Outlook

With multiple FTAs in the pipeline—including those with the EU, EFTA, and the UK—Indian exporters are positioned to leverage preferential market access, reduced tariffs, and enhanced competitiveness. Europe’s strong demand for Indian goods, especially in value-added and diversified product segments, provides a buffer against disruptions in other key markets like the United States.

The surge in exports to Europe in November 2025 demonstrates the resilience and adaptability of Indian exporters in a challenging global trade environment. The combination of FTA-driven access, market diversification, and strategic trade planning is expected to sustain export growth in Europe in the coming years, solidifying the continent’s role as a critical partner in India’s external trade strategy.

In conclusion, Europe has not only offset losses from the US tariff shock but also emerged as a long-term strategic market, with Spain, Germany, Belgium, France, and Poland playing pivotal roles in India’s expanding footprint across the continent.