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The European Commission has put forward its proposals to the Council of the European Union for the signature and conclusion of the Free Trade Agreement with India. This development follows the successful end of negotiations earlier in the year and forms part of a fast-track procedure introduced to accelerate trade deals amid geopolitical uncertainty. The pact would improve market access, reduce tariffs, remove unnecessary barriers and establish predictable rules for trade and investment, the Commission reported.
According to the European Commission, the EU and India already trade goods and services worth over 180 billion euros per year, supporting close to 800,000 jobs across the bloc. The agreement will eliminate or reduce tariffs on 96 per cent of EU goods exports to India, saving European exporters around 4 billion euros annually in duties. For India, the deal provides preferential access to 97 per cent of EU tariff lines, covering 99.5 per cent of trade value with more than 70 per cent seeing immediate elimination, Commission data shows.
Negotiations for the free trade agreement began in 2007, were suspended in 2013 and relaunched in 2022 before concluding in January 2026 at the India-EU summit in New Delhi, the European Commission recalled. Alongside the main agreement, both parties are negotiating separate pacts on geographical indications and investment protection. European Commission figures place India as the EU’s ninth-largest trading partner for goods, with bilateral merchandise trade reaching 118 billion euros in 2025.
The European Commission presents landmark India trade deal to European Council for signature, as reported by the Emirates News Agency on the day the proposal was tabled. EU ambassador-designate to India Jean-Eric Paquet described the move as fantastic news, stating on X that the EU-India FTA had moved one step closer to the finish line. The proposal reflects efforts to strengthen economic security by diversifying supply chains with key Indo-Pacific partners.
The next steps require Council authorisation for signing and conclusion, after which the European Parliament must provide consent before a final Council decision, according to the Commission’s outline. India will conduct its own internal ratification in parallel. The agreement could enter into force by the end of 2026 or in the first half of 2027 if all procedures are completed on schedule.
An Allianz economic research assessment projected that the pact could add 19.2 billion US dollars to EU exports annually and deliver 11.7 billion dollars in additional Indian exports. The report identified gains for the EU in machinery, transport equipment and chemicals, while India would expand in textiles and mineral products. This outcome would help offset trade losses from other partners in a fragmented global economy, the assessment found.
