India and EU finally set to sign massive free trade deal
Business
After years of talks, India and the European Union will sign a major free trade agreement on January 27, 2026.
The FTA is expected to scrap most tariffs, giving a big boost to Indian industries like textiles, IT services, automobiles, and more.
Why does this matter?
This "mother of all deals," as the President of the European Commission called it, creates a market covering two billion people—about a quarter of global GDP.
It's expected to ramp up trade (already at about $135 billion), help India push back against steep US tariffs since 2019, and let the EU rely less on China.
Agriculture is left out due to sensitivities at home. Plus, both sides are signing a Security and Defence Partnership—opening doors for deeper cooperation beyond just business.