The EU-India trade agreement

The world’s biggest free trade zone

Together, the EU and India represent around a quarter of the world’s population, with two billion people, and about 25% of the world’s gross domestic product (GDP). The EU-India trade agreement is the largest trade agreement that both the EU and India have ever concluded and will give the EU a significant competitive advantage in key industrial and agri-food sectors. It will strengthen trade, investment and political ties between the world’s two largest democracies. It will

remove trade barriers and simplify procedures
open new export opportunities
strengthen the EU’s economic security by diversifying supply

Key figures

The EU and India already trade over €180 billion worth of goods and services per year, supporting close to 800,000 jobs in the EU. The agreement is expected to have a strong positive impact on EU's economy

107.6%
estimated increase in EU annual goods exports to India by 2032
€4 billion per year
in savings on duties for European exporters
90%
of tariffs eliminated or reduced

Opportunities for EU exporters

The agreement will give EU companies privileged access to the world’s most populous country (nearly 1.5 billion people) and the fourth largest economy.

With 6,000 European companies operating in India, the agreement will boost competitiveness and create new opportunities across multiple sectors.

The key benefits for EU exporters are

a more open, stable and predictable business environment
faster and simpler customs procedures
preferential access to India’s services market, including financial services and maritime transport
strong protection and enforcement of intellectual property rights, including copyright, trademarks, designs, and trade secrets
assistance to small EU businesses to benefit from new export opportunities

Benefits for EU farmers

The agreement will also protect Europe's sensitive sectors. The EU will

maintain its current tariffs on sensitive products such as beef, sugar, rice, chicken meat, milk powders, honey, bananas, soft wheat, garlic, and ethanol
allow limited imports of products such as sheep and goat meat, sweetcorn, grapes, cucumbers, dried onions, rum made of molasses, and starches

A bilateral safeguard mechanism will allow action to be taken should imports cause any difficulties.

Strict health and food safety rules

Europeans enjoy safe and healthy food thanks to the highest health and food standards in the world and this new agreement will safeguard them. To make sure these standards are maintained

the Commission will increase audits and strengthen border controls on imported food, animal and plant products. Inspections and audits of imported products, notably on pesticides and animal welfare, will be reinforced

Fostering sustainable trade

The agreement goes beyond trade. It includes commitments on sustainability, labour rights and climate change. The agreement

commits both the EU and India to implementing the Paris Climate Agreement
protects workers’ rights
supports women’s economic empowerment
establishes a platform for cooperation on trade-related environmental and climate issues
ensures effective implementation, with civil society organisations playing an active role

Background

The EU and India started negotiating a free trade agreement in 2007. The talks were suspended in 2013 and relaunched in 2022. The negotiations were successfully concluded in January 2026.

Alongside the free trade agreement, the EU and India are also negotiating agreements on geographical indications and investment protection.