From the EU-India agreement and direct flights to shipping and the IMEC corridor, the economic relationship between the two countries is entering a new phase with the upcoming visit of Prime Minister Kyriakos Mitsotakis to India and the business deals that will follow.
Greece-India relations are on a path of economic deepening, as the completion of negotiations for a free trade agreement between the European Union and India creates a new framework for trade and investment at both the European and bilateral levels.
This new framework, which concerns a market of almost 1.5 billion consumers, redefines access terms for European products and businesses in the South Asian country, enabling the gradual reduction (and, in some cases, abolition) of particularly high customs duties.
For Greece, this development is particularly important, as it comes at a time of increased mobility in bilateral economic relations. Economic contacts, business missions, and institutional cooperation channels, even at the highest level, are intensifying, placing specific pillars at the center of the agenda.
Sectors such as investment, shipping, transport, infrastructure, and defense and security are now emerging as key areas of cooperation, creating conditions for more stable and measurable economic flows.
Greece’s goal is to strengthen its position as a transit hub and economic connection between India and the European market.
“The country’s strong presence in shipping, its port and energy infrastructure, as well as discussions regarding new economic corridors, with IMEC at the forefront, compose a broader economic narrative that goes beyond the narrow framework of bilateral trade. For Greece, the challenge is twofold: to translate the agreement into high-value exports and, at the same time, to lock in its role as a gateway to Europe,” reliable sources told Real News.
In the same vein, the expected visit by Kyriakos Mitsotakis to India on February 18, following an invitation from Indian Prime Minister Narendra Modi, is also part of the plan.
The Greek Prime Minister is also expected to participate in the international AI Impact Summit, which focuses on the impact of artificial intelligence on the economy, productivity, and market transformation.
“This move shows that the bilateral agenda is now expanding to high-value-added sectors, such as technology and innovation,” the same sources added.
India is not just a populous country, it is an emerging economic powerhouse with high growth rates, a growing middle class, and increasing demand for higher-quality, certified food, beverages, and products.
According to forecasts from the International Monetary Fund, India is expected to surpass Japan this year and become the world’s fourth-largest economy, behind the US, China, and Germany.
Tariff changes
The conclusion of negotiations for the Free Trade Agreement (FTA) between the EU and India is one of the most important trade openings for Europe towards Asian markets. It is an agreement that will gradually lift one of the world’s most stringent and protective tariff regimes, creating new access conditions for European products and businesses.
At the heart of the new trade architecture are tariff reductions, which in several cases result in zero rates during transitional periods of up to five years. Until now, India’s import tariffs have acted as a substantial barrier to the entry of European products, significantly raising their final prices and limiting their competitiveness against third countries.
On the other hand, the new FTA rebalances global trade, offering Indian businesses a crucial way out of the strict US tariff environment. On the industrial front, it is considered a crucial step toward better integration of India into global supply chains, especially in sectors such as automotive, aerospace, and defense, where reductions in bureaucratic and tariff barriers are expected.
The Greek opportunity
For the agri-food sector, which is also the main area of Greek interest, the agreement provides for substantial reductions or the complete elimination of tariffs on high-value-added products.
Olive oil, for example, is exempt from tariffs that currently reach 45%. Consequently, products such as fruit juices, processed foods, and compotes are reduced to zero rates from levels as high as 55%.
The provisions for fresh fruit are also significant: tariffs on kiwis, apples, and pears are reduced from 33% to 10% under the quota framework.
Raisins and mutton are also included among the categories that led to the complete abolition of tariffs, strengthening the prospects for a more stable presence of Greek exports in the Indian market, as is the case with Corinthian raisins. In the wine sector, tariffs on the premium category are reduced to 20%, and on the medium category to 30%. For alcoholic beverages and beer, tariffs are reduced to 40% and 50%, respectively.
In terms of trade flows, the EU-India agreement is expected to benefit exports to the Greek market more than it strengthens competition through imports, according to market executives. Currently, Greek exports to India primarily consist of fruits, such as kiwis, processed products such as compotes and currants, and limited quantities of table olives and olive oil.
In contrast, imports from India into Greece are concentrated in specific categories, such as table grapes, without directly displacing corresponding Greek high-value-added products, while certain sensitive products, such as rice, have been excluded from the scope of the agreement.
“This balance limits the risks for domestic production and reinforces the importance of the agreement as a tool for expanding Greek exports, provided that the tariff reductions are utilized in a timely manner and with an organized commercial strategy. In the long run, the project could be crowned with success,” market executives emphasize.
According to data from the Panhellenic Exporters Association (PSE), India ranks 55th among Greece’s export destinations, and Greek agri-food exports account for only 9% of all Greek exports to India.
Kiwifruit
The case of kiwifruit is perhaps the best example of how tariffs and geopolitical conditions directly affect Greek exports to India. Despite the consistently high quality of Greek products, their presence in the Indian market has been highly volatile, largely driven by external factors.
Specifically, 2022 was a milestone year for Greek kiwi exports to India. Exports skyrocketed, exceeding 20,000 tons, at a time when the Indian market, for political reasons, restricted access to products from Iran.
The gap that was created was filled by European – and mainly Greek – exports, proving that Greek kiwi can be competitive when access conditions allow. Of course, this situation did not last, since with the reintroduction of Iranian kiwis to the market and the lifting of political restrictions, Greek exports were limited to approximately 4,000 tons.
Strong pillars
Against the backdrop of developments in trade and investment, the Greek-Indian economic relationship appears to extend beyond the exchange of goods. On the contrary, it is gradually acquiring characteristics of broader geo-economic cooperation, where transport, shipping, infrastructure, and international corridors will play a decisive role, answering not only the question of what is exported, but also how and where the flows pass between India and Europe.
The India-Middle East-Europe Economic Corridor (IMEC), considered one of the most ambitious geo-economic plans of recent years, also fits within this broader context. The corridor aims to redefine routes for transporting goods, energy, and data between Asia and Europe, reducing transport time and costs and creating an alternative interconnection axis.
For Greece, IMEC is particularly important, as it is directly linked to its strategic goal of becoming India’s primary gateway to the European market. A crucial link in the corridor is shipping, with Greek ports serving as European hubs for new routes.
Moreover, the interest of Indian business groups in participating in port infrastructure in Greece is part of the logic of creating reliable terminal points that will connect sea and land transport.
Beyond trade and transport flows, tourism is emerging as one of the most dynamic axes of Greece-India relations. India is one of the fastest-growing outbound tourism markets worldwide, with a strong middle class and growing interest in European destinations. Air connectivity plays a decisive role in this new dynamic.
A few weeks ago, IndiGo’s first direct flight to Greece took place, marking the start of a new chapter in travel between the two countries. At the same time, Aegean is scheduled to begin direct flights in March, connecting Athens with New Delhi and Mumbai.
Business footprint
Investment flows between Greece and India are also gradually strengthening. Investment interest is moving in both directions, with Indian companies expanding their presence in the Greek market and Greek groups strengthening their presence in India.
In Greece, Indian groups have a presence across critical infrastructure, industry, and the pharmaceutical sector. An illustrative example is GMR Infrastructure’s participation in the new Kastelli airport in Crete, in collaboration with GEK TERNA.
At the same time, in the pharmaceutical sector, Intas Pharmaceuticals, through its European subsidiary Accord, maintains a productive presence in the country. Accordingly, Greek companies have expanded their operations in India, leveraging the market’s size.
Companies such as Pharmathen, Alumil, and Frigoglass are among those that have invested or are active in the Indian market. In addition to direct investments, business deals are showing particular momentum, primarily in the food, processing, and technology sectors.
A special case is Indian businessman Taizoon Khorakiwala, who has acquired majority stakes in numerous Greek food and bakery companies through the Switz Group, thereby strengthening the businesses’ positions both domestically and abroad.
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