India-EU FTA: strategic opportunities
After nearly 20 years, on January 27, 2026, the EU and India concluded the negotiations over their Free Trade Agreement. This is the largest deal ever for either side, covering a quarter of global GDP and 2 billion people.
India will eliminate duties on 93% of EU exports, while Europe on 91% of India’s exports, saving EU companies €4 billion annually and potentially doubling EU exports to India by 2032.
Key gains
- EU: benefits for agri-food (tariffs on wine and spirits down from 150% to 75%, and then to 40%), automotive parts (duties will gradually fall from 110% to 10%), machinery, chemicals, pharmaceuticals, and medical devices.
- India: improved access for textiles, footwear, pharma, and fisheries.
Thanks to the modern rules of origin and bilateral cumulation, EU firms will be able to build integrated EU-India supply chains while accessing zero tariffs.
India is also opening its services market:
- 100% FDI in insurance and 74% in banking
- A dedicated framework for EU banks to open up to 15 branches over 4 years
- Better access for financial, telecom and maritime services
The FTA provides a crucial framework that transforms India into a potential long-term operating hub in Asia. Its official enforcement is expected for early 2027: it is now in the legal scrubbing phase, EU Parliament consent, and Indian ratification will follow.
