India–EU Concludes Comprehensive Free Trade Agreement
- 28 Jan 2026
On 27th January 2026, India and the European Union have concluded negotiations for a comprehensive Free Trade Agreement (FTA), described as the “Mother of All Deals,” marking a historic milestone in bilateral relations and laying the foundation for a future-ready strategic partnership aligned with India@2047.
Key Points
- Historic Agreement: The FTA was announced during the visit of the President of the European Council and the President of the European Commission to India, signalling a defining moment in India–EU ties.
- Scale and Economic Significance: Covering the world’s 4th and 2nd largest economies, the agreement creates a combined market of over USD 24 trillion, benefiting nearly two billion people.
- Market Access for Indian Exports: India gains preferential access across 97% of EU tariff lines, covering 99.5% of its export value, with over 70% of tariff lines seeing immediate duty elimination.
- Boost to Labour-Intensive Sectors: Zero-duty access will benefit sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, toys, sports goods, tea, coffee, and spices, supporting employment and MSME growth.
- EU Access to Indian Market: India has offered market access across 92.1% of its tariff lines, covering 97.5% of EU exports, with immediate and phased tariff liberalisation.
- Agriculture and Rural Gains: Preferential access is extended to products such as tea, coffee, spices, fruits, vegetables, and processed foods, while sensitive sectors like dairy and cereals are protected.
- Services and Mobility: The FTA includes deep commitments across 144 services subsectors and provides assured temporary mobility for professionals, strengthening India’s role as a global talent hub.
- Traditional Medicine and Innovation: The agreement opens new avenues for AYUSH services in the EU, reinforces TRIPS-compliant intellectual property protection, and supports India’s Traditional Knowledge Digital Library.
