India, EU finalize FTA with mediation procedure for trade disputes
India and the EU have announced the conclusion of a new Free Trade Agreement (FTA) that includes a model mediation procedure for sorting out trade disputes quickly.
Finalized at an India-EU Summit in January 2026, this deal gives 93% of Indian exports duty-free access to Europe and lowers tariffs on nearly all EU products coming into India—saving EU exporters up to €4 billion annually.
Mediation process to resolve trade disputes in 60 days
This FTA isn't just about cheaper goods—it's about making trade smoother and fairer.
The new mediation process aims to resolve disagreements within 60 days, with both sides agreeing on the mediator.
Experts call it a big step for India, since similar rules are already helping EU deals with other countries.
If approved by EU leaders and Parliament, this agreement could boost jobs in key Indian industries and could double EU exports over the coming years—impacting two billion people across both markets.