India–Spain Trade: Where the Relationship Actually Stands

Jan 12

Written By Divya .v

India and Spain do not dominate headlines as a trade pair—but the numbers and trends tell a different story.

As of 2023–2024:

Bilateral trade crossed €8.5–9 billion, showing steady post-pandemic growth
Spain’s exports to India have grown faster than its exports to many other Asian markets
India has become one of Spain’s top Asian trade partners, after China and Japan

This growth is structural, not cyclical.

It is driven by:

EU supply-chain diversification away from single-country dependency
India’s scale in manufacturing and engineering services
Spain’s role as a Southern European logistics and industrial gateway

What Spain Exports to India (High-Value, Not High-Volume)

Spanish exports to India are technology- and capability-driven, not commodity-led.

Trend worth noting:

Spanish firms increasingly export technology plus know-how, while localizing assembly or sourcing in India.

This hybrid model is becoming the preferred market-entry strategy.

What India Exports to Spain (Scale, Cost Efficiency)

India’s exports to Spain reflect its manufacturing depth and cost competitiveness, but the profile is evolving.

Over the last few years:

Engineering and value-added goods have grown faster than traditional textiles
EU compliance requirements are reshaping exporter behavior, not reducing trade

Policy Reality: Trade Is Increasing, Compliance Is Tightening

Two policy developments matter most in 2025:

1. EU Sustainability & Traceability Rules

Carbon reporting, origin verification, and packaging compliance now affect pricing and timelines
Exporters failing on documentation—not product quality—face the highest risk.

2. EU–India Trade Negotiations (FTA Context)

Negotiations are active but complex
Even without an immediate agreement, regulatory alignment pressure is already influencing contracts

Insight:

Companies waiting for an FTA before restructuring their trade model are already late.

Where Deals Commonly Break Down

In Onesto’s advisory work, failures rarely come from lack of demand.

They come from:

Misaligned HS classification
Incorrect Incoterms and risk allocation
Weak contract structuring under EU–India law differences
Underestimating certification and labeling timelines

Trade between India and Spain is less forgiving than before—but far more rewarding when done right.

Strategic Shift We Are Seeing in 2025

Spanish companies are moving from:

“Export to India” → “Integrate India into our value chain”

Indian companies are moving from:

“Sell into Spain” → “Use Spain as an EU base”

This shift explains:

Growth in JVs, technical collaborations, and long-term supply agreements
Increased demand for legal-commercial advisory, not just sourcing agents

Onesto Perspective

India–Spain trade in 2025 is no longer opportunistic.

It is:

Structured
Regulated
Strategy-driven

Success depends on getting the model right before the shipment moves.

At Onesto, we work where: policy meets operations, and law meets execution—helping companies build trade structures that survive audits, regulations, and scale.

Follow : India-Spain Trade Pulse

Each edition will deliver:

Bilateral trade intelligence
Regulatory clarity
Sector-specific insights
Practical execution lessons

Which sector should we analyze next—Automotive, Textiles, Engineering, or Food?

Visit Our Website For More Details: www.onestoconsultancy.com

Divya .v