India-EU Free Trade Agreement: A Strategic Bet on Trade, Talent and Supply Chains

On 27th January 2026, at the 16th India-EU Summit, India and the European Union concluded negotiations on the long-pending India-EU Free Trade Agreement (FTA), nearly two decades after talks first began.

The agreement comes against the backdrop of already deep economic ties. In 2024-25, India-EU merchandise trade stood at $137 billion, with India exporting $76 billion and importing $61 billion, making the EU India’s third-largest trading partner.

India-EU Trade Profile at a Glance

  • India’s Exports to EU: Manufactured goods, energy products, pharmaceuticals, textiles, gems and jewellery.
  • India’s Imports from EU: High-tech and capital goods such as aircraft, advanced machinery, and nuclear reactor ....
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