India and EU just signed a game-changing trade deal
India and the European Union have sealed a major Free Trade Agreement, cutting tariffs on nearly all goods traded between them.
Signed on January 27, 2026, this deal covers not just products but also services, investment, and digital trade—so it's a big leap for both sides.
What's in it for everyone?
For India, expect zero duties on things like clothes, chemicals (about 97.5% of India's chemicals export basket by value), marine exports (tariffs reduced covering 100% of trade value), and jewelry—meaning more exports (think: apparel jumping from $7 billion to $40 billion).
The EU scores phased cuts on car tariffs (from a massive 110% down to 10%), plus cheaper wine, olive oil, and pharma products.
The agreement is also set to expand services and mobility in IT and finance—potentially creating new roles—and helps both regions diversify away from China.
EU exporters could save €4 billion each year as their sales to India get a boost.
Why should you care?
This isn't just about trade—it could mean more job opportunities in tech and finance for young Indians and cheaper European goodies at home.
Plus, it's one of those rare global deals that actually tries to make things fairer for both sides.