With an aim to deepen economic ties and strengthen bilateral trade, Commerce and Industry Minister Piyush Goyal has stated that India and the 27-member European Union (EU) are likely to sign a Free Trade Agreement (FTA) by December 2026, with implementation likely between February and March 2027. On January 27, 2026, India and the EU announced the successful conclusion of negotiations for the 'mother of all deals'.
About the agreement, Goyal said that ‘with almost zero duty, nearly the entire European market will be open to India.’ He also noted that Jamieson Greer, the United States Trade Representative, is scheduled to visit India for discussions on a potential trade pact. Emphasizing India's growing global importance, he highlighted that ‘the whole world is looking towards India.’
Under the India-EU FTA, around 93% of Indian exports are likely to receive duty-free access to the EU market, significantly enhancing trade opportunities for Indian businesses. At the same time, imports of luxury cars and wines from the EU are likely to become more affordable in India. Collectively, India and the EU account for 25% of the global GDP and one-third (about $11 trillion) of international trade (about $33 trillion).
