New Delhi: India and the European Union have concluded negotiations on a long pending free trade agreement, marking a major step in strengthening economic ties between the two sides. The deal is expected to be formally announced during the India EU summit in New Delhi today.
Officials said the agreement covers trade in goods and services, investment, and wider economic cooperation. It is being described by policymakers as one of the most important trade deals India has negotiated in recent years.
The talks, which began nearly two decades ago, faced repeated delays over issues such as tariffs, market access and regulatory standards. In recent months, negotiators intensified discussions and resolved key differences, allowing both sides to reach a final understanding.
Under the agreement, India and the EU are expected to gradually reduce or remove tariffs on a wide range of products. These include industrial goods, automobiles and selected agricultural items. The pact is also likely to improve access for Indian professionals and service providers in European markets and encourage more European investment in India.
Government sources said the deal will now go through legal vetting and approval procedures in both India and the EU. In Europe, it will require ratification by the European Parliament and member states. In India, it will need clearance from the cabinet and other authorities. The agreement is expected to come into force in 2027 after all formal steps are completed.
Leaders on both sides see the pact as a way to boost trade and reduce dependence on uncertain global supply chains. The EU is one of India’s largest trading partners, and bilateral trade has been rising steadily in recent years.
Alongside the trade agreement, India and the EU are also expected to announce progress in areas such as defence cooperation, clean energy and mobility of skilled workers.
Experts say the deal could reshape trade relations between India and Europe and give businesses greater certainty at a time of global economic uncertainty. However, they also note that some sectors may need time to adjust to increased competition once the agreement takes effect.