Economic Footprint of EU Businesses in India report released (Photo: Special arrangement)
New Delhi: Around 6,000 European Union companies operating in India generated €186 billion in combined turnover in 2024, roughly 5% of the country’s GDP and close to a quarter of its manufacturing output, according to a report released Wednesday by the EU delegation in India.
“The Economic Footprint of EU Businesses in India” covers 2014-2024 and offers comprehensive assessment to date of how deeply embedded European firms have become in the Indian economy.
The numbers are substantial. EU companies support close to 6 million jobs – 3.7 million directly and around 2 million more across supply chains – generated €23.5 billion in exports (about 6% of India’s total), paid approximately €7 billion in taxes, and spent €271 million on corporate social responsibility.
Cumulative investment over the decade reached €218 billion.
EU firms are registered across every Indian state, but around 85% are concentrated in five: Maharashtra, Karnataka, Delhi, Tamil Nadu and Haryana. Karnataka leads in ICT and services; Tamil Nadu and Gujarat are emerging manufacturing centres; Gujarat and Telangana are the fastest-growing destinations for new EU investment.
Sectoral breakdown
Manufacturing accounts for 40% of EU business activity, followed by professional services (16.6%), ICT (12%), administrative support (9.4%) and trade (6.2%). The spread reflects a broader shift from India as a market for goods to a base for operations, services and technology.
Strategic backdrop
The EU is India’s largest trading partner and leading source of foreign direct investment. Bilateral trade is approaching €200 billion; the EU investment stock stands at €140 billion.
The report’s release follows the 16th EU-India Summit in January 2026, which concluded with a Joint Comprehensive Strategic Agenda.
A long-delayed free trade agreement has been finalised, though negotiations on investment protection and geographical indications continue.
EU Ambassador Hervé Delphin said European business presence went “far beyond the balance sheet,” pointing to joint startup ecosystems, co-investment frameworks, and “Blue Valleys” – proposed zones for EU-India industrial and technology collaboration.
