The deal also reflects wider cooperation, with the EU signalling stronger engagement with India in areas such as security and defence
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India and the European Union have successfully concluded negotiations on a long-awaited Free Trade Agreement (FTA), marking a major step forward in their economic partnership. Commerce Secretary Rajesh Agrawal confirmed that the deal has been finalised and described it as balanced, practical and future-oriented.
According to Agrawal, the agreement is expected to come into force sometime next year. Before that, the text will undergo a detailed legal review, a process known as “legal scrubbing”, which is likely to take around five to six months. Once this is completed, the formal signing of the pact will follow. He said the agreement would help deepen trade and investment ties between the two sides and strengthen India’s integration with the European economy.
- The announcement comes as senior European leaders, including European Council President Antonio Costa and European Commission President Ursula von der Leyen, are in New Delhi to attend the 16th India-EU Summit and participate in India’s 77th Republic Day celebrations
- Prime Minister Narendra Modi said India was honoured to host the EU leadership, noting that their presence reflected the growing strength and importance of the partnership
From the European side, Trade Commissioner Marcos Šefčovič described the pact as the “mother of all deals”, underlining its scale and ambition. He said the agreement could open up the Indian market further for European companies by reducing high import duties in many areas, while still protecting sensitive sectors. If implemented as planned, the deal would create a vast free trade area covering nearly two billion people.
EU leaders see the agreement as a strategic move to diversify trade beyond traditional partners, while India views it as an opportunity to attract investment and expand exports.
