Historic pact concluded at 16th India–EU Summit promises expanded market access, boost to exports, services, mobility, and long-term growth aligned with ‘Viksit Bharat 2047’.
New Delhi, January 27 — India and the European Union on Monday announced the conclusion of the long-awaited India–EU Free Trade Agreement (FTA), marking a major breakthrough in India’s global trade and economic diplomacy. The announcement was jointly made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen at the 16th India–EU Summit held in New Delhi.
Negotiations for the FTA, re-launched in 2022, culminated after years of sustained engagement, reflecting strong political commitment on both sides to establish a balanced, modern and rules-based trade partnership. The agreement positions India and the EU as trusted partners committed to open markets, predictability and inclusive growth.
The European Union is among India’s largest trading partners. In 2024–25, bilateral trade in goods reached INR 11.5 lakh crore (USD 136.5 billion), while trade in services stood at INR 7.2 lakh crore (USD 83.1 billion). Together, India and the EU account for nearly 25 percent of global GDP and one-third of global trade, making the pact strategically significant.
Union Commerce and Industry Minister Piyush Goyal termed the agreement a defining milestone, noting that India has secured unprecedented market access for over 99 percent of its exports by value to the EU. The FTA is expected to significantly benefit labour-intensive sectors such as textiles, apparel, leather, handicrafts, gems and jewellery, engineering goods and automobiles, with tariffs on exports worth nearly USD 33 billion set to be eliminated.
The pact also unlocks major opportunities in services, digital trade, financial services, and mobility of skilled professionals, alongside commitments on education, research and innovation. Agriculture and processed food exports, including tea, coffee and spices, are set to gain enhanced competitiveness, while sensitive sectors remain protected.
Beyond trade, the FTA strengthens cooperation in areas such as clean technologies, artificial intelligence, semiconductors and climate action, reinforcing India’s role as a reliable global partner.
Aligned with the vision of “Viksit Bharat 2047,” the India–EU FTA opens a new chapter in bilateral relations, fostering growth, innovation and long-term economic resilience for both regions.
New Delhi, January 27 — India and the European Union on Monday announced the conclusion of the long-awaited India–EU Free Trade Agreement (FTA), marking a major breakthrough in India’s global trade and economic diplomacy. The announcement was jointly made by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen at the 16th India–EU Summit held in New Delhi.
Negotiations for the FTA, re-launched in 2022, culminated after years of sustained engagement, reflecting strong political commitment on both sides to establish a balanced, modern and rules-based trade partnership. The agreement positions India and the EU as trusted partners committed to open markets, predictability and inclusive growth.
The European Union is among India’s largest trading partners. In 2024–25, bilateral trade in goods reached INR 11.5 lakh crore (USD 136.5 billion), while trade in services stood at INR 7.2 lakh crore (USD 83.1 billion). Together, India and the EU account for nearly 25 percent of global GDP and one-third of global trade, making the pact strategically significant.
Union Commerce and Industry Minister Piyush Goyal termed the agreement a defining milestone, noting that India has secured unprecedented market access for over 99 percent of its exports by value to the EU. The FTA is expected to significantly benefit labour-intensive sectors such as textiles, apparel, leather, handicrafts, gems and jewellery, engineering goods and automobiles, with tariffs on exports worth nearly USD 33 billion set to be eliminated.
The pact also unlocks major opportunities in services, digital trade, financial services, and mobility of skilled professionals, alongside commitments on education, research and innovation. Agriculture and processed food exports, including tea, coffee and spices, are set to gain enhanced competitiveness, while sensitive sectors remain protected.
Beyond trade, the FTA strengthens cooperation in areas such as clean technologies, artificial intelligence, semiconductors and climate action, reinforcing India’s role as a reliable global partner.
Aligned with the vision of “Viksit Bharat 2047,” the India–EU FTA opens a new chapter in bilateral relations, fostering growth, innovation and long-term economic resilience for both regions.
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