European companies have dramatically expanded their footprint in India, with close to 6,000 EU firms generating 186 billion euros in turnover in 2024, equivalent to roughly 5 per cent of India's gross domestic product (GDP). The report, titled The Economic Footprint of EU Businesses in India, tracks growth from 2014 to 2024 and underscores a fundamental shift in the EU-India relationship, with European companies becoming structural pillars of India's economy.

EU companies collectively support close to 6 million jobs in India, 3.7 million through direct employment and roughly 2 million more across supply chains and related services. In 2024, these firms contributed approximately 7 billion euros in taxes to Indian public revenues and spent 271 million euros on corporate social responsibility initiatives.

The report points to a broadening sectoral base, with manufacturing accounting for 40 per cent of EU business activity in India, followed by professional services, information and communication technology, administrative support, and trade. Geographically, Maharashtra, Karnataka, Delhi, Tamil Nadu, and Haryana host approximately 85 per cent of all EU firms.

The report's release comes at a moment of heightened diplomatic and economic engagement between Brussels and New Delhi, with bilateral trade approaching 200 billion euros and an investment stock of 140 billion euros. EU Ambassador to India Herve Delphin said the relationship goes well beyond commerce, with both sides actively co-developing the next generation of startups, trusted supply chains, and innovation hubs.

Negotiations on investment protection and geographical indications agreements are ongoing, and both sides are working to build joint investment and co-development zones. The report concludes by identifying manufacturing, digital technologies, and services as the sectors with the greatest potential for expanded cooperation, with a recently concluded free trade agreement in place and a dense web of over 50 bilateral sectoral dialogues active.