On 27 January 2026, the European Union (EU) and India concluded negotiations on an ambitious and comprehensive Free Trade Agreement (FTA), the largest trade deal either side has ever reached.

The agreement marks a significant milestone in EU-India economic relations, reinforcing ties between two of the world’s second and fourth largest economies. It comes at a time of growing geopolitical uncertainty and global economic challenges, providing a strong foundation for closer cooperation and trade liberalisation.

Under the FTA, over 90 % of bilateral goods and services trade will benefit from tariff elimination or reduction, enabling significant cost savings for exporters. European businesses are expected to save up to €4 billion annually in tariffs, and EU exports to India are projected to more than double over time as a result of enhanced market access.

India is already a major trading partner for the EU, with annual bilateral trade in goods and services exceeding €180 billion and supporting nearly 800 000 jobs in Europe.

While most agricultural products are included in tariff liberalisation, some sensitive sectors—such as beef, poultry, rice and sugar—are excluded from the agreement. Importantly, all Indian exports to the EU must continue to meet the Union’s strict health, safety and regulatory standards.

The agreement also includes robust provisions on sustainable development, environmental protection, climate action and labour rights, along with mechanisms for ongoing dialogue and cooperation on related issues—reflecting shared commitments to responsible trade and long-term strategic partnership.

This breakthrough deal is expected to create new opportunities for businesses on both sides, deepen economic integration, and strengthen the overall EU-India strategic partnership.

Read more: EU and India conclude landmark Free Trade Agreement