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
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
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
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.