EU takes a step closer towards signing trade deal with India

European Ambassador designate Jean-Eric Paquet hailed the India-EU Free Trade Agreement (FTA) as a bold step forward for two major economic players. The agreement has cleared its path for early approval after the European Commission presented it to the EU council. Paquet shared the proposal on X, describing it as more than just another trade pact.

Once implemented, the FTA will remove or reduce tariffs on 96% of EU goods exports to India, saving European exporters around EUR 4 billion per year in customs duties. The deal aims to boost reciprocal market access, eliminate unnecessary trade barriers, and set predictable regulatory standards. Although negotiations began in 2007 and were suspended in 2013, they resumed in 2022 and concluded successfully in January 2026.

The FTA is anticipated to be effective by late 2026 or the first half of 2027. Both sides have initiated domestic ratification procedures, and the Commission needs authorization from the Council and the European Parliament's approval before the agreement can be finalized and enter into force. India is the EU's ninth-largest trading partner in goods, with bilateral merchandise trade valued at EUR 118 billion in 2025.

The agreement is expected to enhance economic ties with a crucial partner in the Indo-Pacific region.