Commerce and Industry Minister Piyush Goyal on Tuesday said the long-awaited India–European Union Free Trade Agreement (FTA) is expected to come into force during the 2026 calendar year, shortly after India and the 27-nation EU formally concluded negotiations on the landmark trade pact.
Speaking at a special briefing following the state visit of the President of the European Council and the President of the European Commission to India, Goyal said the agreement will now move into the final stage of legal review. “The negotiations have been successfully concluded. The agreement will undergo legal scrubbing on a fast-track basis, and we hope to celebrate its implementation within the calendar year 2026,” he said.
Describing the pact as a “historic and comprehensive” agreement, the minister noted that once implemented, around 93 per cent of Indian exports are expected to receive duty-free access to the European Union. At the same time, Indian consumers could benefit from lower prices on select imports such as luxury cars and wines from Europe.
Goyal said the agreement was the outcome of negotiations that stretched over more than two decades and reflected a balanced approach from both sides. “Leaving aside sensitive issues, India and the EU have arrived at a fair, equitable and mutually beneficial deal. It is a win-win for industries and businesses on both sides,” he said.
Highlighting the scale of the partnership, the minister said the FTA will effectively create a combined market of nearly two billion people, linking India, the world’s fourth-largest economy, with the European Union, the second-largest economic bloc. Together, India and the EU account for about 25 per cent of global GDP and nearly one-third of global trade.
The agreement is also expected to unlock new opportunities for investment, technology collaboration and job creation, particularly in manufacturing, services and emerging sectors, officials said.
Also Read | India, EU Seal Landmark Free Trade Agreement; PM Modi Calls It a Historic Step
With the conclusion of this pact, the European Union becomes India’s 22nd free trade agreement partner. Since 2014, the NDA government has stepped up its trade engagement, signing FTAs with countries and blocs including Mauritius, the UAE, Australia, the UK, EFTA and Oman, while also announcing new trade agreements with partners such as New Zealand.
Officials said the India–EU FTA marks a significant milestone in India’s trade diplomacy and is likely to play a key role in boosting exports, strengthening global supply chain integration and deepening economic ties with Europe in the coming years.
Be a part of Elets Collaborative Initiatives. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook , connect with us on LinkedIn and follow us on Twitter, Instagram.
"Exciting news! Elets technomedia is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest insights!" Click here!
