Archive · 12 Sep 2026
India-EU Trade Deal Moves Toward Final Approval
India and the European Union have finished negotiating a very large trade agreement.
The European Commission has sent the agreement to the European Council for approval.
If approved, the deal would make it easier for businesses in both places to sell goods and services.
Tariffs on 96% of goods sent from the EU to India would be removed or lowered.
European exporters could save about €4 billion each year.
India says more than 99% of its exports to the EU, measured by trade value, would gain market access.
The agreement would also help skilled Indian workers provide services in Europe.
It is not active yet because several authorities still need to approve it.
The European Commission forwarded proposals to the European Council for signing and concluding the India-EU free trade agreement.
The deal, whose negotiations were concluded in January, could become the largest trade agreement concluded by India and the European Union.
The agreement would eliminate or reduce tariffs on 96% of EU goods exported to India, saving European exporters about €4 billion annually.
India says the pact would secure market access for more than 99% of its exports to the EU by trade value and support sectors including textiles, footwear and engineering.
The agreement still requires European Council authorisation, European Parliament consent and completion of India’s internal ratification procedures.
- Who
- India, the European Union, the European Commission, the European Council, the European Parliament and India’s Commerce and Industry Ministry are involved.
- What
- The European Commission forwarded proposals for the signing and conclusion of an India-EU free trade agreement.
- When
- The proposals were forwarded on Friday; negotiations were announced as concluded in January.
- Where
- The agreement concerns trade between India and the European Union, with the European Council in Brussels considering the proposal.
- Why
- The agreement is intended to lower tariffs, improve market access, reduce trade barriers, establish predictable trade and investment rules, and strengthen supply-chain diversification.
- Agreement status
- The European Commission has asked the European Council to authorise signing the agreement.
- EU tariff coverage
- Tariffs on 96% of EU goods exports to India would be eliminated or reduced.
- Estimated EU savings
- European exporters could save around €4 billion per year in customs duties.
- India’s market access
- India says the agreement would secure market access for more than 99% of its exports to the EU by trade value.
- Existing trade
- India and the EU trade more than €180 billion in goods and services annually.
- Employment
- EU-India bilateral commerce supports nearly 800,000 jobs in the European Union.
- Required approvals
- The European Council must authorise the agreement, the European Parliament must consent, and India must complete its internal ratification procedures.
- Targeted Indian sectors
- The agreement is expected to support textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods and automobiles.
