This paper focuses on the opportunities and the threats of a Free Trade Agreement (FTA) between the European Union (EU) and India. The study examines the trade trends, competitiveness of the sectors and the economic effects in order to make policy choices. Purposive sampling was applied to the primary sectors using secondary data of the World Bank (2015) and the UN Comtrade databases (20152024). There were descriptive statistics, Revealed Comparative Advantage (RCA) Index, Trade Complementarity Index (TCI), multiple linear regression, Pearson correlation, and sensitivity analysis. Descriptive statistics showed that Indian export to EU had increased up to $78 billion, whereas the import had increased to 92 billion. The RCA analysis revealed that the textiles, pharmaceuticals, and IT services are the industries with high comparative advantage. The trends in TCI showed that there was increased match between the supply of exports in India and the demand of imports in the EU. Regression and correlation analysis had proved a significant positive correlation between trade expansion and GDP growth (R 2 =0.72,r=0.84). The analysis of sensitivity revealed that the increase of tariffs would have a moderate impact on the decrease in exports in particular industries. The results indicate that an FTA has the potential to increase trade, promote economic growth, and become more sectoral competitiveness, as long as the policies alleviate the sector-specific vulnerabilities.