EU–India Free Trade Agreement Signed: €4 Billion Annual Savings and 96% Tariff Cuts
A landmark European Union–India Free Trade Agreement (FTA) was officially signed on 27 January 2026, ending nearly four years of negotiations and setting the stage for transformative economic cooperation between the EU and India.
The negotiations were formally relaunched on 17 June 2022, alongside separate discussions on an Investment Protection Agreement and an Agreement on Geographical Indications (GIs). After years of intensive engagement, the FTA has now been concluded, opening unprecedented trade and investment opportunities between Europe’s largest economic union and India, the world’s most populous nation.
Under the agreement, European exporters gain privileged access to India’s market of 1.45 billion consumers, potentially doubling EU goods exports to India by 2032. A key feature of the deal is the elimination or reduction of tariffs on more than 96% of EU goods exports, including major European agri-food products such as wine, olive oil, chocolate, and pastries.
These tariff concessions are projected to generate approximately €4 billion in annual savings on duties, enhancing the competitiveness of EU exporters while expanding product choices for Indian consumers.
Alongside the FTA, negotiations are ongoing for a dedicated Investment Protection Agreement. The agreement aims to create a predictable and secure investment environment with commitments on non-discrimination of investors, protection against expropriation without compensation, fair treatment, and the free transfer of investment returns. A modern dispute settlement mechanism will ensure that investment rules are transparent and enforceable, providing confidence for long-term cross-border investments.
The signing of the EU–India FTA marks a significant milestone in global trade, promising stronger economic ties, increased market access, and a win-win scenario for businesses and consumers on both sides.
