How does the EU-India FTA affect IT services trade?

The FTA includes a digital trade chapter and services liberalization provisions that smooth cross-border IT delivery. This covers data flow provisions, recognition of professional qualifications, and eased visa procedures for short-term business visitors.

What is India's IT services trade value with the EU?

India's IT services trade with the EU exceeds €14 billion annually and is growing at 11.3% CAGR, making it one of the largest service export sectors in the bilateral relationship.

Which Indian cities are the main IT services hubs for EU clients?

Bengaluru (India's Silicon Valley), Hyderabad (enterprise IT), Pune (engineering services), Chennai (banking and financial IT), and the Noida/Gurugram corridor (outsourcing) are the primary hubs serving European clients.

IT Services & Software

Digital trade chapter and services liberalization — smoother cross-border IT delivery

India's IT services and software sector is the single largest contributor to India-EU services trade, generating over €14 billion annually and growing at a compound rate of 11.3%. The corridor spans enterprise application development, cloud migration, cybersecurity consulting, managed infrastructure, data analytics, and product engineering — delivered through a blend of offshore, nearshore, and on-site engagement models. Over 6,000 Indian IT companies serve European clients, ranging from Tier-1 giants like TCS, Infosys, and Wipro (each with thousands of EU-based employees) to specialised mid-tier firms and fast-growing SaaS startups.

The EU-India FTA's digital trade chapter is the first of its kind for India, covering cross-border data flows, e-signatures, source code protection, and mutual recognition of trust services. While it stops short of a blanket data-transfer adequacy decision, the chapter creates a framework for smoother regulatory dialogue — crucial for an industry where GDPR compliance, Schrems II implications, and the new Digital Operational Resilience Act (DORA) shape every engagement. European enterprises are accelerating digital transformation budgets, and India's combination of engineering depth, English-language proficiency, and competitive pricing makes it the default offshore partner for most EU firms.

Key clusters drive different specialisations: Bengaluru dominates in product engineering and SaaS; Hyderabad leads in enterprise services and cybersecurity; Pune is strong in automotive and industrial software; Chennai excels in banking and insurance IT; and the Noida-Gurugram belt serves as the primary delivery hub for consulting-led engagements. With the FTA easing visa friction for intra-corporate transferees and establishing clearer rules around digital service taxation, the corridor is poised for sustained double-digit growth through 2030.