By Edgaras Savickas, LRT.lt.
European Commission President Ursula von der Leyen has hailed the new EU-India free trade agreement as the “mother of all deals”, but economists say its immediate impact on Lithuania is likely to be gradual, reflecting the country’s still-limited trade ties with India.
SEB Bank economist Tadas Povilauskas said the agreement is clearly beneficial for Lithuanian exporters, though trade volumes to date have been small. In 2024, a significant share of Lithuania’s exports of domestic origin to India consisted of a “single shipload of beans”, he noted.
Chief economist at the national development bank ILTE, Jonė Kalendienė, said Lithuania’s trade with India so far has focused largely on vegetables. She expects the greatest benefits from the agreement to accrue to companies already active in the Indian market.
“For those companies that already export there, things will become easier,” Kalendienė told LRT.lt. “Prices will fall, and they will be able to export more because Indian buyers will be able to purchase more. That scenario is more realistic than assuming companies with no prior presence will suddenly enter the market.”
According to the Foreign Ministry, India ranked as Lithuania’s 32nd-biggest trading partner in 2024.
Read more: LRT.LT
