The European Union (EU) continues to play an important role in supporting India’s economy, as they are one of India’s top traditional sources of imports. They provide many types of high-value imported goods that help to support sectors of India’s economy such as manufacturing, health care, infrastructure and energy. Below is a list of 10 types of goods that India has imported from the EU, which highlights Europe’s contribution to India’s economic ecosystem:
1. Equipment & Machinery
Equipment & Machinery are at the centre of India’s imports from the EU and include industrial machines used in multiple industries including turbines, engines, and manufacturing gear that are all necessary for various industries in India (i.e. power generation, textiles, food and heavy engineering). Germany and Italy are two of India’s largest sources of this equipment and machinery that help India upgrade its industrial productivity and precision manufacturing.
2. Electrical Equipment & Electronics
India also imports a range of electrical machinery for use in its energy transition to smart grids and industrial automation and will continue to build on this demand as it continues to see growth in its electrical infrastructure.
3. Pharmaceutical Products
India receives a large number of high-end pharmaceutical imports from the EU, comprising pharmaceutical intermediates, vaccine ingredients, specialised medicines, biological products, and active pharmaceutical ingredients (APIs), which are produced in low quantities within India.
Germany, Belgium and Ireland are among the primary European nations providing advanced and patented pharmaceuticals to India.
4. Chemicals and Chemical Products
Imports from the EU consist of both organic and inorganic chemicals, including speciality chemicals used in pharmaceuticals, agriculture, cosmetics, and industrial products. These imports are very important to India’s downstream manufacturing industries because many of them can only be produced at high-purity levels with compliance to regulatory requirements.
5. Transport Equipment and Auto Components
Transport-related imports from the EU include aircraft components, railways, ships and high-tech automobiles. Other notable import items include luxury automobiles and precision automotive components, particularly from Germany and Sweden. These types of imports benefit India’s aviation, logistics and automotive industries.
6. Medical and Scientific Instruments
The European Union provides advanced medical devices to India, including diagnostic equipment and scientific instruments. Imaging machines are a large category of imported medical devices, while surgical instruments and laboratory supplies make up slightly smaller amounts. The precision measuring devices that are imported to India from the EU are also essential to the health care system, the research community, and the increasing numbers of people travelling to India for medical care.
7. Jewelry and Jewelry-Related Material
Precious metals — including gold, silver, and platinum — plus processed diamonds and jewelry components are imported from the EU to support India’s vast gems and jewelry industry, which is dependent on European refineries to supply it with quality materials and certification of its gemstones.
8. Aircraft and Aeronautics
Although aircraft and aeronautics are not a particularly large category, they are important in that aircraft and helicopters and their engines and parts are being imported from European manufacturers, including through supply chains connected to Airbus. This imports provide for the growth of civil air travel in India and new defence capabilities.
9. Plastic and Polymeric Products
Plastic, polymeric and related products derived from petroleum are widely used throughout the world, including in India, to manufacture products such as packaging, automobile parts, electronic devices and construction materials. Suppliers within the EU are known for providing very high quality polymers and sustainable products, which match India’s continually evolving environmental standards.
10. Optical, Photographic, and Precision Equipment
The European Union (EU) exports optical lenses, cameras, sensors and precision instruments; all of which are utilized by businesses in various sectors such as Defence, Space Research, Media Production, Security, and Industrial Inspections that are globally competitive.
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Significance of EU Imports
India imports large amounts of technology and high value goods from the European Union complementing India’s domestic manufacturing and innovation efforts. As India and the EU work towards finalizing an agreement on a Free Trade Area, these trade flows are likely to increase, reducing costs and improving access to advanced technologies from the EU.
The relationship which exists between India and European Union imports represents both the amount of product being traded as well as the level of strategic interdependence between both regions, especially when it comes to Healthcare, Clean Energy, Advanced Manufacturing, and Infrastructure.
