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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

Frequently asked questions

Why has the EU negotiated a Free Trade Agreement (FTA) with India?

India is the world's fourth-largest economy with the world's largest population, yet EU exports to India remain relatively low, compared to our exports elsewhere. This is partly due to the very high tariffs which India charges on imported goods. The deal will reduce tariffs and administrative burdens, making trading easier, cheaper and faster. It will also benefit consumers.

How is the agreement going to affect EU exports?

The agreement is expected to double EU exports to India, which already support 800,000 European jobs. The trade deal will create new business opportunities that will in turn foster job creation.

How will the agreement support the green transition?

The EU and India commit to working together on climate action and the sustainable use of natural resources. They will work towards implementing international agreements such as the Paris Agreement, the Convention on Biological Diversity, and the Convention on International Trade in Endangered Species.

What are the next steps?

1. Publication of negotiated draft texts

2. Legal revision and translation into all official EU languages

3. Proposal of the agreement to the Council of the EU for signature and conclusion

4. Adoption by the Council

5. Signing of the agreement between the EU and India

6. European Parliament's agreement to the deal

7. The Council's decision on concluding the deal

 

Once India also ratifies the agreement, it can enter into force.

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.

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