India and EU to sign FTA December 2026, effective mid-2027
India and the European Union are gearing up to sign a free trade agreement (FTA) in December 2026, aiming to make trade smoother by cutting tariffs and opening up more opportunities on both sides.
Together, they make up a quarter of the world's economy, so this is a pretty big move.
If all goes as planned, the FTA should kick in by mid-2027 after getting final approval from the European Parliament.
India, EU discuss investment, carbon, defense
Alongside the FTA, both sides are also working out an investment protection agreement to help businesses operate more easily across borders.
The EU's new carbon border rules, rolling out fully by 2034, will encourage greener imports and push for smoother cooperation with partners like India.
Plus, there's a growing focus on security ties, with plans for ongoing discussions between the Indian Navy and European navies and a Defence Industries Forum to boost collaboration in defense tech and strategy.