Is there room for your technology?
Indian buyers are cost conscious and have strong local and Asian alternatives. European technology wins where it changes the buyer’s economics: higher output, better recovery, lower lifetime cost or compliance that local alternatives cannot offer. Test that case with real buyers before you build a structure.
How to be present
Foreign companies can set up a liaison office, branch office or project office, which require approval from the Reserve Bank of India under the foreign exchange rules, or incorporate a wholly owned subsidiary. A liaison office cannot carry out commercial activity; it can only represent the parent.
Under India’s FDI policy, 100 percent foreign ownership through the automatic route, without prior government approval, is permitted for most manufacturing and many trading activities. Some sectors have caps or need approval.
Many European companies start with an agent or distributor. The US Commercial Service notes that, given India’s size and diversity, more than one partner may be needed across regions or product lines.
Certification: check BIS early
India uses Quality Control Orders (QCOs) issued with the Bureau of Indian Standards (BIS) to make certification mandatory for many product categories, including imports. The order covering machinery and electrical equipment safety was amended in November 2025, and its implementation date is to be notified by the government. Check the current status for your product before you quote delivery times.
Trade agreements
- EFTA–India: the Trade and Economic Partnership Agreement has been in force since 1 October 2025. It covers Iceland, Liechtenstein, Norway and Switzerland, so it matters for Norwegian and Swiss exporters.
- EU–India: negotiations were concluded in January 2026, but the agreement is not yet in force. In September 2026 the European Commission proposed it to the Council for signature; it still needs signature, European Parliament approval and ratification.
Choosing partners
- Look for partners who already sell to your target buyers, in the regions that matter to you.
- Check what they have actually sold, to whom, and who in their team would sell your product.
- Agree territory, exclusivity, targets and how the relationship ends before you sign.
We start with an honest market read, then build the meetings, representation and partnerships you need to compete.
Questions
Can a European company own 100 percent of an Indian company?
In most manufacturing and many trading activities, yes, through the automatic route under India’s FDI policy. Some sectors have caps or require government approval.
Is the EU–India free trade agreement in force?
No. Negotiations were concluded in January 2026, but as of September 2026 the agreement still needs signature, European Parliament approval and ratification. The separate EFTA–India agreement has been in force since 1 October 2025.
Do industrial products need BIS certification?
Many product categories fall under Quality Control Orders that make BIS certification mandatory. Whether and from when it applies depends on the product, so check before you quote.
- Reserve Bank of India: FAQs on liaison, branch and project offices
- DPIIT: FDI policy, sectors under the automatic route (July 2025)
- Elitas RCS: BIS QCO second amendment, Machinery and Electrical Equipment Safety (November 2025)
- EFTA: India TEPA enters into force (1 October 2025)
- European Commission: The EU-India trade agreement (updated 11 September 2026)
- US Commercial Service: India Country Commercial Guide, Market Entry Strategy
Last reviewed 2026-09. This guide is general information, not legal or tax advice.