India secures historic free‑trade deals with EU and UK

After nearly two decades of negotiations, India and the European Union signed a free‑trade agreement on 27 January 2026 in New Delhi. The pact, described as the EU’s largest free‑trade zone, will cut tariffs on more than 90 % of goods, lower duties on automobiles, industrial machinery, chemicals and pharmaceuticals, and is projected to generate up to €4 billion in annual savings for European firms while aiming to double bilateral trade by 2027. Sensitive products such as beef, sugar and rice were excluded, and a security‑defence partnership was also agreed.

The United Kingdom’s free‑trade agreement with India entered into force on 15 July 2026, reducing tariffs on a wide range of goods and expanding cooperation in services, investment and business mobility. Analysts note that the agreement could give infrastructure investors greater policy certainty for long‑term projects in transport, logistics, renewable energy and digital networks, although it does not eliminate the usual financing and regulatory risks of large‑scale developments.