Chartered Accountants◆Practising since 2016

Spain to India · Trade and sectors

Trade agreements and sector rules for Spanish investors

CA Utsav Dogra, Chartered Accountant, ICAI M. No. 542375 · Updated

In brief

India and the EU concluded negotiations on a free trade agreement on 27 January 2026; it still needs signature and ratification and does not change FDI rules. Foreign investment from Spain is on the automatic route in most sectors. Spanish investors are most active in infrastructure and construction, renewable energy, automotive components.

What is specific to Spanish companies

The EU–India agreement is concluded but not in force, so do not price projects on tariff cuts yet.

Sectors

  • Infrastructure and construction
  • Renewable energy
  • Automotive components
  • Textiles and retail

A trade agreement does not change FDI caps, FEMA pricing or RBI reporting.

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How SU and Company helps

We assess whether a GIFT City unit or a mainland company fits the business and set up the chosen entity.

  • IFSC versus mainland comparison
  • Entity incorporation
  • Accounting, tax and compliance after set-up

Questions

Does a trade agreement change FDI rules?

No. Tariffs and services access change; FDI policy, sector caps and FEMA reporting still apply.

General information as at 5 November 2026, not advice for a particular case. Indian and Spanish rules change often; confirm the current position before acting. Spanish law points should be confirmed with a Spanish adviser.

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