EU Moves Forward with Historic Free Trade Agreement with India

The European Commission has taken a significant step by proposing a Free Trade Agreement with India, which could become the largest trade deal between the two entities. This agreement aims to enhance market access, reduce tariffs, and eliminate trade barriers, potentially saving billions in duties. With the EU and India already trading over 180 billion euros annually, this deal is expected to strengthen economic ties and benefit businesses and citizens alike. Approval from the European Council and Parliament is the next step before implementation.

By Narendra Chaudhary Sep 11, 2026, 17:57 IST

Brussels Takes a Significant Step in Trade Relations

Brussels: On Friday, the European Commission officially presented its proposal to the European Council to finalize the Free Trade Agreement (FTA) with India, a significant advancement towards realizing this ambitious pact, often referred to as the 'mother of all deals'.

If the Council grants approval, this agreement will stand as the largest trade deal ever established between the EU and India.

The conclusion of the FTA was announced by India and the EU in January, marking a pivotal moment in their economic partnership and trade relations with major global players.

Once the agreement is enacted, it will enhance market access, lower tariffs, eliminate unnecessary trade barriers, and establish reliable regulations for trade and investment between the EU and India, according to a press release from the Commission.

Currently, the EU and India engage in trade exceeding 180 billion euros annually, which supports nearly 800,000 jobs within the EU.

This agreement is set to remove or reduce tariffs on 96% of EU goods exported to India, resulting in approximately 4 billion euros in annual savings on duties for European products, as stated in the release.

"This agreement unites two of the world's largest economies, encompassing a market of 2 billion individuals and accounting for about a quarter of global GDP," remarked Maros Sefcovic, the Commissioner for Trade and Economic Security.

"Our objective has been clear from the outset: to ensure that both businesses and citizens experience the tangible advantages of this landmark FTA as swiftly as possible. Timing is crucial, which is why we are now proceeding with our proposals to the Council for signature and conclusion in record time," he added.

The EU-India FTA demonstrates the EU's dedication to enhancing economic relationships with key partners in the Indo-Pacific region, as highlighted in the release.

Following the Council's approval, the final text will also need the endorsement of the European Parliament before it can be implemented.