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.
