India-EU Free Trade Deal Set for 2027 Implementation, Boosting Trade and Investment

India and the European Union politically concluded their free‑trade agreement on 27 January 2026, with ratification expected to allow the pact to come into force in early 2027. The deal will lower tariffs on a wide range of goods—including machinery, chemicals, pharmaceuticals, automobiles and textiles—and expand market access for services, digital trade, investment and skilled‑worker mobility.

The agreement is projected to increase Indian exports to Europe, attract more European investment in sectors such as green energy, electric vehicles, infrastructure and technology, and create jobs across both economies. Airbus India’s managing director Jurgen Westermeier called the deal a “win‑win” that could unlock major business opportunities for the aerospace sector and other industries.

Bilateral trade in goods reached about $136 billion in 2024‑25, with Indian exports to the EU valued at $75.9 billion and imports at $60.7 billion. The partnership covers roughly 25 % of global GDP and one‑third of world trade, meaning the FTA could affect up to two billion people worldwide.