India-EU Free Trade Agreement moves toward final approval

The European Commission has formally submitted proposals to the European Council to sign and conclude a Free Trade Agreement (FTA) with India. Described as a “bold leap for two economic powerhouses,” the pact is expected to be the largest trade agreement ever concluded by both the EU and India.

Key provisions of the agreement include the reduction or elimination of tariffs on 96 percent of EU goods exported to India. This move is estimated to save European exporters approximately 4 billion euros in annual customs duties. The agreement aims to improve market access, remove unnecessary trade barriers, and establish predictable regulatory standards for both parties.

The EU and India currently engage in trade of goods and services valued at over 180 billion euros annually, a relationship that supports nearly 800,000 jobs within the EU. Beyond direct trade, the deepening economic engagement is seen as a strategic move for the EU to diversify its global supply chains and reduce dependence on China by leveraging India’s growing manufacturing and services sectors.