India and EU finally seal major free trade deal
After 18 years of talks, India and the European Union have concluded negotiations on a major free trade agreement.
Expected to be announced in New Delhi on January 27, 2026—with leaders like PM Modi and EU Commission President Ursula von der Leyen present—the deal is being called "balanced and forward-looking" by Commerce Secretary Rajesh Agrawal.
The goal: make it easier for both sides to do business together.
Most goods get duty-free access
This FTA is aimed at scrapping or cutting duties on about 97-99% of traded goods.
For India, that could mean zero-duty exports for things like textiles, chemicals, jewelry, leather and footwear.
The EU could secure gradual tariff cuts on cars and wines—big wins for both sides over time.
What's next?
India-EU goods trade was $136.5 billion in FY2024-25, while services trade was $83.1 billion in 2024, but this deal should push those numbers even higher.
Timeline for the agreement to take effect is not specified in the source (may take months or longer for legal checks, translations and ratification).