New Delhi: Commerce Minister Piyush Goyal announced that the long-awaited India-European Union free trade agreement is expected to be implemented within 2026, following the successful conclusion of negotiations between India and the 27-nation EU bloc. The agreement, described as a landmark deal, is projected to significantly enhance trade ties between the fourth-largest global economy, India, and the EU, the world’s second-largest economic bloc.
Goyal said the pact will create a market encompassing approximately 2 billion people, offering vast opportunities for businesses on both sides. Once in effect, 93 percent of Indian exports to the EU will enjoy duty-free access, while imports of luxury cars, wines, and other products from Europe will become more affordable in India.
“Every agreement stands on its own merit, and this is a wonderful deal. It will undergo legal review on a fast-track basis, and we hope to celebrate its implementation within 2026,” Goyal said during a special briefing on the state visit of the EU Council President and the President of the European Commission to India.
The minister emphasized that negotiations for the pact have spanned over two decades and reflect a “balanced, equitable, and fair” approach. He noted that the agreement is expected to benefit industries across sectors in both India and the EU and open new avenues for investment.
Combined, India and the European Union account for about 25 percent of global GDP and roughly one-third of international trade, totaling around USD 11 trillion of trade in a global market of USD 33 trillion.
The EU will become India’s 22nd free trade partner. Since 2014, the government has signed agreements with Mauritius, the UAE, the UK, EFTA, Oman, and Australia, and announced deals with New Zealand. In 2025, trade agreements with Oman and the UK were signed, alongside the announcement of a concluded deal with New Zealand, reinforcing India’s expanding global trade network.
This historic pact is expected to strengthen economic ties, foster investment, and further integrate India into global trade, positioning both India and the EU for long-term growth and cooperation.
Sorry, there was a YouTube error.
