The India–EU Free Trade Agreement (FTA) has entered a decisive stage, with the European Council advancing the agreement on 11 September 2026 toward final approval. The deal is expected to be formally signed by the end of 2026.
Key features of the proposed FTA include:
- Trade: Greater market access and tariff reductions for goods and services.
- India’s expected gains: Duty-free or improved access for textiles, pharmaceuticals, IT services and agricultural products.
- EU’s expected gains: Reduced Indian tariffs on automobiles, machinery, wines and luxury goods.
- Digital and green economy: Cooperation on e-commerce, data protection, renewable energy and climate commitments.
- Mobility: Easier pathways for Indian professionals, students and researchers to work or study in EU countries.
- Dispute settlement: A structured framework for resolving trade disputes and addressing regulatory issues.
- Strategic importance: The agreement would strengthen India–EU economic ties, support India’s Indo-Pacific strategy, and help the EU diversify its trade relationships beyond the US and China.
