With India and the European Union (EU) agreeing on a free trade agreement to offset US trade challenges, Kerala is poised to reap significant benefits.

Last fiscal year, India's exports (excluding IT and petroleum products) amounted to Rs.42,343 crore, with about 18% destined for the European Union.

Under the latest agreement, 90% of Indian products will be tariff-free immediately, and within 10 years, 99% of products will not attract tariffs.

Tariffs on rubber-based products such as surgical gloves, tyres, and other industrial products have been fully removed, benefiting rubber-based export units. However, products from rubber plantations planted on deforested land after 2020 cannot be exported to Europe. This will not significantly affected Kerala, though GPS tagging will be required.