Archive · 28 Jan 2026
India-EU Finalize Major Free Trade Agreement
India and the European Union made a big trade deal called the Free Trade Agreement (FTA).
This deal is expected to help many industries in India, like textiles, pharmaceuticals, chemicals, and electronics.
The stock market reacted positively to this news, with some industries seeing big gains.
However, the auto sector was a bit worried because the deal might make it easier for luxury cars from the EU to be sold in India.
The deal is also expected to boost India's exports by a lot, which is good for the economy.
The Indian government is also inviting global investors to invest in India's energy sector, which has a lot of opportunities for growth.
The EU was India’s second-largest IT spending market, contributing around 16% of total IT revenue.
The brokerage said the agreement is also likely to support foreign direct investment and foreign institutional investor inflows over the medium to long term.
India and the EU finalized a significant free trade agreement (FTA) on January 27, 2026, referred to as the 'Mother of all deals'.
The FTA is expected to benefit industries like textiles, pharmaceuticals, chemicals, and electronics, with the stock market reacting positively to the news.
The auto sector reacted negatively due to concerns about increased luxury car imports from the EU.
The FTA is expected to boost Indian exports by ₹6.4 lakh crore, with various states benefiting from the deal in different sectors.
Foreign Portfolio Investors (FPIs) have been selling stocks, with concerns about the rupee's depreciation and the uncertainty surrounding the US-India trade agreement.
- Who
- India and the European Union
- What
- Finalized a significant free trade agreement (FTA)
- When
- Tuesday, January 27, 2026
- Where
- India and the European Union
- Why
- To enhance trade, defense, and professional mobility, strengthening their relationship amidst a complex global landscape
- Agreement
- India-EU Free Trade Agreement
- Stock Market Reaction
- Positive, with gains in textiles, pharma, chemicals, electronics
- Auto Sector Reaction
- Negative, concerns about luxury car imports
- EU Market Share for Apex Frozen Foods
- 46% in H1 FY26
- EU Sales Growth for Apex Frozen Foods (FY25)
- 41%
- USA Sales Decline for Apex Frozen Foods (Q2 FY26)
- 10%
- EU Exports Growth for Apex Frozen Foods (Q2 FY26)
- 18%
- Tariff Reduction for EU Cars in India
- From 70-110% to 40%, further to 10% over a decade
- India-EU Trade Surplus
- $25 billion
- India-US Trade Surplus
- $45 billion
- FPI Selling in January 2026
- ₹33,598 crores
- Expected Boost to Indian Exports
- ₹6.4 lakh crore
- India's Refining Capacity
- 260 MMTPA, aiming for 300 MMTPA
- India's Petroleum Product Exports
- 150+ countries
- Upstream Oil & Gas Investments Target
- $100 billion by end of decade
- EU Tariffs on Indian Goods
- Average 3.8%, up to 10% for labor-intensive sectors
- Textiles and Apparel Tariffs
- Slashed from 12% to nil
- Leather and Footwear Tariffs
- Up to 17% removed entirely
- Gems and Jewellery Tariffs
- Up to 4% eliminated
- Marine Products Tariffs
- Up to 26% reduced to nil
- Chemicals Sector Tariffs
- Up to 12.8% removed for 97.5% of export basket
- Machinery and Industrial Goods Tariffs
- Up to 22% set to be eliminated
Sources
India EU trade deal: Apex Frozen Foods shares surge 15%; here’s why
India EU trade deal: What experts say; sectors to gain; stock market outlook
India-EU trade deal done. FIIs now await ‘Father of all deals’, say experts
Here's How Different States Will Benefit from the India-EU Free Trade Agreement
What Gets Cheaper Under The India–EU Free Trade Agreement? Check Full List Of 32+ Products Here
Sensex bounces back on buying in metal, bank stocks
India targets $100 bn oil & gas investments, 300 MMT refining capacity: PM Modi
Was Donald Trump ‘unifying’ factor in India-EU trade deal? Piyush Goyal responds
India-EU Trade Deal: List Of Foods Set To Get Cheaper In India, How It Will Impact Consumers And The Industry
India–EU trade agreement puts spotlight on student and workforce mobility
How the US media covered the India-EU ‘mother of all deals’
Indo-EU FTA to offer level playing field for seafood exports with competing countries
India-EU clinch ‘mother of all’ free trade deal amid global trade weaponisation
India-EU FTA to boost various sectors of Assam: Himanta
Letters to Editor
Federation of European Business in India welcomes EU-India FTA, hails it amongst most consequential economic partnerships globally
Luxury car prices unlikely to come down
India EU trade deal: Vedanta, UPL, SRF, KPR Mill shares among 28 likely gainers. Table
Markets rebound as India-EU trade deal spurs rally on D-St
Sensex jumps nearly 500 points, investors earn over ₹6 lakh crore— 10 key highlights
BEL shares hit record high after Q3 results; PAT rises 21%, revenue up 24%
Sensex jumps 487 pts, Nifty above 25,300; will stock market rally continue?
