Photo: European Commission
The Economy and Industry Ministry expects the EU-India Free Trade Agreement (FTA), which was concluded earlier on Tuesday, to boost the competitiveness of the Bulgarian economy, facilitate the entry of Bulgarian goods into the Indian market, and lead to a real reduction in costs for Bulgarian exporters, the Ministry said, answering questions from the Bulgarian News Agency (BTA).
According to the Ministry, the sectors of the Bulgarian economy that could potentially be affected by the agreement are the food and beverage industry and the food trade, including coffee, tea, spices and dried vegetables and fruits, the textile industry and related manufacturing activities, as well as industries with low added value.
The removal of traditionally high Indian tariffs is expected to improve the price competitiveness of Bulgarian products. Easier access to the Indian market is expected for Bulgarian goods from the agricultural sector, food products and raw materials. Although no precise quantitative estimates are available at this point, a tangible reduction in costs for Bulgarian exporters is expected.
The conclusion of the FTA will have a positive effect on Bulgarian exports, as it provides for large-scale reductions and the elimination of tariffs traditionally applied by India, particularly on agricultural, food, and raw-material goods, the Ministry said. This will improve the price competitiveness of Bulgarian products and facilitate access for Bulgarian companies to the Indian market.
At this stage, there are no official indicative estimates of the annual amount of tariff-related cost savings for Bulgarian companies. Nevertheless, given India's high tariff levels and the current volume of exports, a tangible reduction in costs for Bulgarian exporters can be expected.
Bilateral Trade
In 2024, bilateral trade between Bulgaria and India totalled USD 424.4 million, with exports of USD 174.7 million and imports of USD 249.7 million. The trade balance was negative for Bulgaria at USD 75 million.
In January-September 2025, exports stood at USD 165.7 million and imports at USD 237.5 million, bringing total trade to USD 403.2 million and the deficit to USD 71.8 million. The Economy and Industry Ministry said that compared with January-September 2024, a significant increase in exports and overall trade was recorded, while the negative balance persisted.
Leading Bulgarian export groups to India include sunflower seeds; anise, coriander, and cumin seeds; crude glycerol; yeast and bakery and other food products. A new export category comprises transmission apparatus for radiotelephony, broadcasting and television.
Main imports from India are coffee, dried vegetables, crustaceans, tea, grapes and spices.
Based on the current structure and dynamics of bilateral trade, the Ministry said the earliest positive effects of the FTA are expected in the agri-food sector; the chemical industry (crude glycerol); the food-processing industry, including yeast; and niche segments of electronics and communications equipment.
The Ministry also noted that part of actual exports, including special products, services and software, is not reflected in official merchandise trade statistics, suggesting a broader real economic impact.
Potentially sensitive sectors that could be affected by the agreement include the food-processing industry and food trade, due to significant imports of coffee, tea, spices and dried vegetables and fruits, which could lead to price pressure. Another such sector is textiles and related manufacturing, in the event of intensified competition from Indian products, as well as industries with low added value and high price sensitivity, where India's cost-based competitive advantage could be reinforced.