Forwarders will gain as Europe accelerates global trade agreements, says DHL
Opportunities are in the offing for forwarders and logistics operators, as the EU and the ...
European forwarders are upping ties in India as they look to tap into a “looming fortune”, following the signing of the “mother of all trade deals” between the bloc and the south Asian powerhouse earlier this year.
Speaking to The Loadstar, several forwarders said that India represented one of their brightest opportunities for the coming years, with Translog Overseas’ founder and chief executive, Justo Marmol, pointing to the country’s surging growth rate.
“India is by far the brightest spot on the map at the moment for multiple reasons, not least that it is experiencing growth of 7-8% every year, but also because of its size and because it is undergoing major development,” Mr Marmol told The Loadstar.
“That development means it is going to need everything – it’ll need finished products, it will need high-tech equipment, and it’ll need machinery, and European suppliers need to be looking at this and we are certainly pushing the potential.”
The start of the year saw the EU and India conclude two decades of negotiations with a free trade agreement that will see 90% of Indian goods moving into the bloc tariff-free, while India will remove tariffs on 96.6% of EU goods.
Included is a whopping cut on automotive tariffs for European manufacturers, which having previously had to pay duties of 110% to sell into India will now find themselves subject to just a 10% levy.
“With 0% tax on either side across most goods, this is going to be a booming trade route in the coming years and, while India-UK trade is popular and strong, this has not been the case for Europe,” Mr Marmol added.
“For us though, India has become our ‘first market’. We have been working there for some 14 years and have been moving the sorts of goods – machinery and finished products – that European suppliers will be tapped up for.”
Presently, Translog averages 240 tonnes of shipments by air to India each month, while it also handles between 600 and 700 teu of ocean-borne freight a month, and the company believes it can expect rapid growth in the immediate future.
Pointing to Spanish exports to India alone, Mr Marmol said that last year saw a 14% year on year increase, coming on the back of a year which had itself seen a 12% year on year uptick in goods heading to the South Asian powerhouse.
Asked what his expectations were for 2026, he said, “it’s a question mark but it will be double digit,” before adding that the deal achieved with Europe “also helps put India in the news and gain the attention of European suppliers”.
While Translog has been working in India for more than a decade, other forwarders are testing the water. One told The Loadstar that EU expectations of trade between the two doubling in the next five years meant they couldn’t afford not to tap into the market.
Forwarders based in India are also pleased by the deal, with one noting that they have already experienced an upturn in enquiries as Indian companies look to capitalise on the budding European trade relationship.
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