These sectors stand to gain the most from tariff reductions (currently 10–14% in EU) and easier market access.

1. Textiles & Apparel (Biggest Winner)
   Currently, Indian exporters pay ~10% duty, while competitors like Bangladesh pay 0%. The FTA levels this playing field.

• Impact: Immediate margin expansion or volume growth.

• Key Companies:

• Gokaldas Exports & KPR Mill: Large garment exporters with significant exposure to Western markets.

• Welspun Living & Indo Count: Home textiles (bed sheets/towels) exporters.

• Raymond: Suitings/fabric exports could see demand spikes.

2. IT Services & Tech
   The deal is expected to ease visa norms for professionals and data flow regulations (GDPR alignment), effectively lowering the cost of doing business.

• Impact: Higher deal win rates in Europe (traditionally a harder market than the US).

• Key Companies:

• TCS, Infosys, Wipro: All have been aggressively expanding European local delivery centers.

• L&T Technology Services (LTTS): Benefits from European auto/manufacturing R&D outsourcing.

3. Specialty Chemicals & Pharma
   Tariff elimination on chemicals will boost competitiveness against China. For Pharma, easier certification processes are the main goal.

• Impact: Increased volume for contract manufacturers and generic exporters.

• Key Companies:

• SRF & Navin Fluorine: High export exposure in chemicals.

• Divi’s Labs & Syngene: Contract manufacturing beneficiaries.

4. Auto Components (Ancillaries)
   While complete cars are a sensitive topic, components are a sweet spot. Europe wants to diversify supply chains away from China (China+1).

• Impact: Higher export orders for precision parts.

• Key Companies:

• Motherson Sumi (SAMIL): Already has huge revenue from Europe (Audi, VW, etc.).

• Bharat Forge: Supplier of forged components to European truck/auto makers.
  🔴 The Risky/Challenged Sectors
  These sectors face headwinds from non-tariff barriers, specifically the Carbon Border Adjustment Mechanism (CBAM), essentially a "carbon tax" on imports entering the EU starting fully in 2026.

1. Metals (Steel & Aluminum)
   The EU will tax imports based on the carbon emissions generated during their production. Indian steel is coal-heavy and carbon-intensive.

• Impact: Exports to EU will become 20–35% more expensive, eroding margins or market share.

• Key Companies at Risk:

• Tata Steel: High exposure to Europe (though their Dutch plant helps, their Indian exports will be taxed).

• JSW Steel & Jindal Steel (JSP): Significant export volumes could be hit.

• Hindalco / Vedanta: Aluminum exports face similar carbon scrutiny.

2. Automobile OEMs (Luxury Competition)
   If India lowers import duties on European cars (currently 100%), European luxury cars (Audi, BMW, Mercedes) will become cheaper, challenging domestic premium segments.

• Key Companies:

• Tata Motors (JLR): Ironically, this helps JLR (their luxury arm) sell cheaper in India, but hurts their domestic mass-market EV dominance if cheap VW/Renault EVs flood in.

• Mahindra: Could face stiff competition in the premium SUV segment.

Other likely winners; GMM Pfaudler, Marksans , Balkrishna Industries, SSWL, Sudarshan Chemical , UPL, Mastek , Bharat Forge etc