EU Companies Fuel India’s Growth: New Report Reveals Nearly 6,000 Firms Driving GDP, Jobs and Manufacturing Excellence
New Delhi, 7 May 2026: The European Union in India today announced the release of its economic footprint report, titled “The Economic Footprint of EU businesses in India” detailing the deepening integration and growing contribution of European firms to Indian growth and development. The comprehensive study provides a complete update on the extent of EU economic presence: around 6000 EU firms are active in India, generating €186 billion in turnover in 2024, equivalent to around 5% of India’s GDP and nearly a quarter of its manufacturing sector turnover.
The report tracks a decade of growth, illustrating how EU businesses have moved beyond trade to become vital pillars of India’s socio-economic fabric over the period 2014–2024. It highlights that European companies have become deeply embedded in India’s economy and are significant contributors to jobs, trade, and public revenues. Their economic footprint includes supporting close to 6 million jobs (comprising 3.7 million direct employment and around 2 million jobs across supply chains and related services), while generating €23.5 billion in exports (around 6% of India’s total), and contributed approximately €7 billion in taxes in 2024, alongside €271 million in corporate social responsibility spending. Furthermore, the EU companies in this period generated €218 billion in cumulative investments between 2014 and 2024.
While the EU firms maintain a presence in every Indian State and Union Territory, the footprint is strongest in India’s major economic hubs. Maharashtra, Karnataka, Delhi, Tamil Nadu and Haryana host around 85% of all EU firms. Karnataka has solidified its role as a premier Information and Communication Technology (ICT) and services hub; Tamil Nadu and Gujarat are fast developing as major manufacturing centres while Delhi has become the main centre for professional and administrative services for the European firms. Gujarat and Telangana are highlighted as the fastest emerging centres for new investment. The finding also highlights a diverse sectoral footprint - Manufacturing remains the primary driver (40%) complemented by strong performances in Professional services (16.6%), ICT (12%), Admin support (9.4%) and Trade (6.2%).
With bilateral trade nearing EUR 200 billion and an investment stock of EUR 140 billion, today the EU is India's top trading partner and leading foreign investor. Their expanding presence and long-term commitment to Indian market reinforces the EU’s role as a trusted economic partner of India. The adoption of Joint EU-India Comprehensive Strategic Agenda in January 2026 further reflects converging interests, shared values and economic synergies.
H.E. Ambassador Hervé Delphin, EU Ambassador to India said, “EU businesses presence in India goes far beyond the balance sheet - it’s about creating jobs at scale and driving real innovation and collaboration. It is also about playing the long game of integration of our economies. Alongside the recently concluded FTA, we are negotiating on the investment protection and geographical indicators agreements, co-developing the next generation of startups and trusted supply chains as well as building innovation hubs as well as Blue Valleys for joint investments and co-development. All these initiatives provide an enabling environment for business ties to grow further.”
The study highlights the potential to further strengthen resilient value chains, boost investment, and expand cooperation in key sectors such as manufacturing, digital technologies and services.
See the full report:
EU-India: As the world's two largest democracies, the European Union and India share a commitment to a rules-based global order, effective multilateralism, and sustainable development. Since 2004, India has been a strategic partner of the EU, and 2022 celebrated the 60th anniversary of their relations. Following the 16th EU-India Summit, held on 27 January 2026 in New Delhi, bilateral cooperation is driven by the European Union-India Comprehensive Strategic Agenda, the EU Strategy for Cooperation in the Indo-Pacific, the EU-India Trade and Technology Council (TTC), and the Global Gateway Strategy. With over 50 EU India sectoral dialogues, the partnership prioritises efficient implementation to deliver at scale and speed for the benefit of people in both regions.