On 27 January 2026, the European Commission announced the conclusion of negotiations on the EU–India Free Trade Agreement (FTA), which the Commission described as the largest FTA either side has concluded to date.
Once implemented, the FTA is intended to reduce tariffs and administrative burdens and to simplify certain customs procedures. Based on the Commission’s published estimates, tariff cuts would cover 96.6% of EU goods exports to India by value, save around EUR 4 billion per year in duties and could double EU goods exports to India by 2032[1].
Background – why this deal matters now
India is the world’s fourth-largest economy, yet EU exports to India remain relatively low – in part because of very high tariffs. As of now, exports to India are estimated to support around 800,000 jobs – further export growth is expected to contribute to additional jobs.
From a process perspective, this agreement follows a long negotiation history. The EU and India first launched FTA negotiations in 2007, suspended talks in 2013, and relaunched them in 2022, with the last formal negotiating round taking place in October 2025.
Headline features
The FTA will be highly relevant to cross-border trade flows (goods, services, mobility and border processes), as well as digital trade and intellectual property, and is expected to bring in particular the following[2]:
- Goods (tariffs and market access): Significant tariff liberalisation, including reductions “that none of [India’s] other trading partners have received”. In this respect, the Commission highlights the following illustrative examples:
- Automotive: a phased reduction of car tariffs from 110% to 10%, subject to an annual quota of 250,000 vehicles.
- Industrial goods: reductions or elimination of tariffs on machinery (up to 44%), chemicals (22%) and pharmaceuticals (11%).
- Agri-food: tariff cuts (tariffs currently averaging over 36%), with sensitive sectors such as beef, sugar and rice excluded from liberalisation.
- Other sectors: Textiles, leather and footwear, certain plastics will see an immediate tariff elimination
- Services (market access): “Privileged access” in services, including sectors such as financial services, telecom and maritime transport.
- Mobility (temporary entry for professionals): A more predictable framework for the temporary entry and stay of certain categories of professionals linked to services trade (Business Visitors, Intra-Corporate Transferees, Contractual Service Suppliers and Independent Professionals).
- Trade facilitation and rules of origin: Simplified customs processes, closer cooperation on border management and rules of origin determining eligibility for tariff preferences enabling ease of doing business on both sides
- Digital trade: A digital trade chapter described as supporting legal certainty for e-commerce and digital service delivery, while preserving the parties’ right to regulate, including on privacy and security.
- Intellectual property: Strengthened enforcement and protection of IP rights, including trademarks, designs, copyright and trade secrets.
What to look out for when the legal text is published
For goods traders:
- Product-by-product tariff schedules (including staging) and any quota design where relevant.
- Rules of origin – the product-specific rules and the documentation/verification model for claiming preferences at import (the summaries point to self-certification/“statement on origin” and customs cooperation).
- Border processes – the operational customs and trade facilitation commitments (for example, transparency, advance rulings and simplified procedures), and any product-related requirements that may affect import approvals, inspections or certification (for example in agri-food, chemicals or pharmaceuticals).
For service providers (and other digital/IP-reliant businesses):
- The services schedules – coverage, reservations and conditions, including any sector-specific carve-outs and regulatory/licensing constraints.
- Temporary mobility – the scope and conditions attached to the professional categories (Business Visitors, Intra-Corporate Transferees, Contractual Service Suppliers and Independent Professionals).
- Digital and IP chapters – whether they contain operational rules that affect e-commerce/digital delivery and the practical enforcement toolkit for IP rights.
Next steps in the process
The draft negotiated text is expected to be published shortly and will then undergo legal revision and translation. The European Commission will subsequently submit proposals to the Council for signature and conclusion. Entry into force will require signature and EU approval (including European Parliament consent) and ratification by India.
[1] https://ec.europa.eu/commission/presscorner/detail/en/ip_26_184
[2] The negotiated legal text has not yet been published, so this information reflects the Commission’s published summary of the agreement: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/india/eu-india-agreements/memo-eu-india-free-trade-agreement-chapter-chapter-summary_en
