Archive · 1 Feb 2026
India-EU FTA Signed After 20 Years
India and the European Union signed a big trade deal on January 27, 2026, after 20 years of talks.
This deal makes India's exports to the EU much cheaper, which is a problem for Pakistan.
Pakistan has been selling things to the EU without paying taxes because of a special program called GSP+.
But now, India will also get to sell things to the EU without taxes, making it harder for Pakistan to compete.
Pakistan's leaders are worried that this will hurt their economy and jobs.
They are talking to the EU to try to keep their special tax-free deal, but it's set to end in 2027.
Many people in Pakistan's business community are concerned that they will lose their advantage in the EU market.
The deal is expected to double India's exports to the EU in five years, benefiting various sectors like leather goods, sportswear, and marine products.
India's Commerce and Industry Minister Piyush Goyal said the deal will be fair and beneficial for all involved.
India and the EU signed a Free Trade Agreement on January 27, 2026, after 20 years of negotiations.
The deal gives India duty-free access to the EU, potentially doubling its exports to the EU in five years.
Pakistan's GSP+ status, which allows zero-duty access to the EU for 66% of its exports, expires in December 2027.
Pakistan's business community fears losing its export edge and market share in the EU due to the India-EU FTA.
India's Commerce and Industry Minister Piyush Goyal assured that the FTA will be fair and beneficial for all 28 countries involved.
- Who
- India, European Union, Pakistan
- What
- Signing of a Free Trade Agreement (FTA) between India and the EU
- When
- January 27, 2026
- Where
- New Delhi, India
- Why
- To enhance trade relations and economic cooperation between India and the EU, impacting Pakistan's trade advantage
India and EU
Pakistan
Trade Advantage
India and EU
The FTA provides India with duty-free access to the EU market, enhancing its export potential and economic growth.
Pakistan
Pakistan fears losing its export edge and market share in the EU due to the FTA, as it currently benefits from the GSP+ scheme.
Economic Impact
India and EU
The FTA is expected to double India's exports to the EU in five years, benefiting various sectors like leather goods, sportswear, and marine products.
Pakistan
Pakistan's business community is concerned about the potential loss of its competitive advantage in the EU market, which could negatively impact its economy and jobs.
- Date of Agreement
- January 27, 2026
- Economies Involved
- India and EU (25% of global GDP, 2 billion people)
- Pakistan's GSP+ Status
- Expires in December 2027
- India's Bilateral Trade with EU
- USD 136.53 billion in 2024-25 (exports worth USD 75.85 billion, imports worth USD 60.68 billion)
- India's Services Exports to EU
- USD 46 billion
- EU Market Share for India
- 17% of India's total exports
- EU Exports to India
- 9% of EU's total overseas shipments
- India's Export Target
- USD 2 trillion by 2032
Sources
How India's "Mother Of All Deals" With EU Wipes Out Pakistan's Trade Advantage
With ‘mother of all deals’ in bag, Goyal says she will be compassionate, fair to all 28 children
India-US trade deal talks progressing, both sides working to close pact quickly: Goyal
India May Achieve USD 2 Trillion Exports Target By 2032: Piyush Goyal
With ‘mother of all deals’ in the bag, Goyal says pact will be compassionate, fair to all 28 children
World looking at us as $30 trillion economy, trusted partner: Piyush Goyal
No to China blocs; Yes to fair trade
