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EU and India conclude free trade agreement talks

Jan 30, 2026 European Union

India and the European Union have finalised a free trade agreement that will reduce tariffs on most goods. This is the largest deal of its kind ever concluded by either party

According to the European Commission, the agreement is expected to double EU exports to India by 2032 by reducing or eliminating tariffs on 96.6% of traded goods by value. This would save European companies an estimated 4 billion euros in duties.

In return, the EU will phase out tariffs on 99.5% of goods imported from India over seven years. Duties on a range of Indian products, including marine goods, leather and textile products, chemicals, rubber, base metals, and gems and jewellery, will be reduced to zero.

“The EU and India make history today, deepening the partnership between the world’s biggest democracies. We have created a free trade zone of 2 billion people, with both sides set to gain economically. We have sent a signal to the world that rules-based cooperation still delivers great outcomes”, said Ursula von der Leyen, the President of the European Commission.

The European Commission will now put the proposed trade agreement to the European Council for signature and conclusion. Once the European Council has adopted the agreement, the EU and India can sign it, but it will only enter into force after ratification by the European Parliament and India.

The EU-India trade talks, which have been ongoing for two decades, gained momentum amid growing global tensions. The bloc is seeking to reduce its reliance on America by expanding its ties with other markets.

Earlier this month, the EU signed a free-trade agreement with the four South American countries that founded the Mercosur customs union. Last year, it announced a trade and investment deal with Indonesia.

Image Credits: ec.europa.eu

European Union India Economy International Trade Trade agreements