New Delhi / Brussels:
India and the European Union have concluded a long-awaited Free Trade Agreement (FTA), marking a major milestone in bilateral relations after nearly 20 years of negotiations. The deal is expected to significantly expand trade, investment, and economic cooperation between the two sides.
The agreement was announced following the India-EU Summit, attended by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. Officials described the pact as one of the most comprehensive trade agreements signed by India to date.
Under the FTA, both sides have agreed to reduce or eliminate tariffs on a wide range of goods, including automobiles, industrial products, agricultural items, wines and spirits, and pharmaceuticals. The agreement is also expected to simplify regulatory processes and improve market access for businesses operating across borders.
According to preliminary estimates, the deal could unlock trade opportunities across a combined market of nearly two billion people. European exporters are expected to benefit from reduced duties on high-value manufactured goods, while Indian industries may gain improved access to EU markets for textiles, pharmaceuticals, and engineering products.
A notable component of the agreement involves the pharmaceutical sector, where tariff reductions are expected to strengthen supply chains and increase the availability of affordable medicines in Europe, while offering Indian drug manufacturers greater export opportunities.
Leaders on both sides emphasized that the agreement goes beyond trade in goods, covering services, investment, digital trade, and sustainable development. Provisions related to labor standards, environmental protections, and intellectual property rights are also included.
The FTA is seen as a strategic step amid shifting global trade dynamics, with India and the EU seeking to reduce supply chain risks and deepen economic cooperation. Final legal review and ratification processes are expected to follow before the agreement comes into force.
