New Delhi: India and the European Union have formally concluded negotiations for a Free Trade Agreement, marking a significant milestone in global commerce and in India’s international economic engagement. The pact establishes a modern, rules based trade framework between the world’s fourth largest and second largest economies, bringing together a combined market of nearly two billion people.
Union Home Minister Amit Shah described the agreement as a defining moment for India’s global trade journey. He said the deal reflects Prime Minister Narendra Modi’s diplomatic vision and reinforces the country’s pursuit of Atmanirbhar Bharat through balanced, trusted and mutually beneficial partnerships. According to him, the agreement represents a strategic breakthrough that strengthens India’s position on the global economic stage.
Finance Minister Nirmala Sitharaman also welcomed the development, calling the India EU Free Trade Agreement a milestone that will create wider opportunities for people and businesses. She highlighted the role of leadership and sustained negotiations in bringing the complex agreement to fruition.
Maharashtra Chief Minister Devendra Fadnavis termed the signing a historic day, noting that the agreement impacts nearly 30 percent of the world’s population and about 25 percent of global trade. He said the scale of the deal places it among the largest trade agreements in history and added that India, including industrial states such as Maharashtra, stands to gain significantly from expanded access and investment flows.
The agreement has also drawn positive reactions from Europe. Ireland’s Ambassador to India welcomed the pact, underlining the importance of trade agreements in driving economic growth. He pointed to Ireland’s own transformation through access to common markets and stressed that lower tariffs benefit consumers, companies and producers on both sides.
Economically, the India EU FTA is expected to be transformative. The combined market is valued at around INR 2091.6 lakh crore or about USD 24 trillion. The pact offers unprecedented market access for over 99 percent of India’s exports by trade value, while safeguarding sensitive sectors and development priorities.
Bilateral merchandise trade between India and the EU stood at approximately INR 11.5 lakh crore in 2024–25, with Indian exports accounting for around INR 6.4 lakh crore. Trade in services reached INR 7.2 lakh crore, reflecting steadily deepening ties.
For Indian businesses, the agreement delivers preferential access across 97 percent of EU tariff lines, covering nearly all trade value. Labour intensive sectors such as textiles, leather, footwear, and gems and jewellery are set to benefit from immediate or phased duty reductions. Together, these sectors account for exports worth over INR 2.87 lakh crore and are expected to gain competitiveness, generate employment and integrate more deeply into European value chains.
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