EU Commission Proposes India FTA, Agreement Could Become Largest Trade Deal For Both Sides

Last Updated:September 11, 2026, 17:26 IST

The European Commission has proposed the EU-India FTA, seeking Council approval for its signing and conclusion.

India-EU flags. (AI/ Image for representation)

The European Commission has put forward proposals to the Council for the signature and conclusion of the Free Trade Agreement (FTA) between the European Union and India, seeking authorisation for its signing and conclusion.

If authorised by the Council, the agreement would become the largest trade agreement ever concluded by both the EU and India.

FTA To Improve Market Access, Reduce Tariffs

Once adopted and entered into force, the agreement is expected to improve market access, reduce tariffs, tackle unnecessary barriers to trade and provide predictable rules for trade and investment between the EU and India.

The EU and India already trade more than €180 billion worth of goods and services every year, supporting close to 800,000 EU jobs.

The agreement will eliminate or reduce tariffs on 96% of EU goods exports to India. Overall, the tariff reductions are expected to save around €4 billion per year in duties on European products.

European Companies To Get Easier Access To Indian Market

The agreement will make it easier for European companies to access the Indian market and compete on a more level playing field.

It will also allow consumers to benefit from increased choices and more competitive prices.

Proposal Aims To Speed Up Implementation

The proposal put forward by the European Commission marks a key step towards enabling consumers and businesses to benefit from the agreement as soon as possible.

The move is in line with the fast-track procedure outlined earlier this year by Commissioner for Trade and Economic Security Maroš Šefčovič.

The procedure aims to speed up the implementation of FTAs, which the Commission said is crucial amid geopolitical uncertainty and growing pressure on the global trading system.

EU Seeks Council Approval For Signing

The EU-India FTA also reflects the European Union’s commitment to strengthening economic ties with key partners in the Indo-Pacific region.

With its proposals, the European Commission is seeking the Council’s approval to sign the agreements. The agreements will then require the European Parliament’s consent before their conclusion and entry into force.

The Indian authorities are simultaneously going through their own internal ratification procedures.

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What is the current status of the India-EU Free Trade Agreement?

The European Commission has presented proposals to the Council seeking authorization to sign and conclude the Free Trade Agreement (FTA). This step follows a fast-track procedure introduced by Commissioner Maroš Šefčovič to accelerate implementation. Once the Council authorizes the signature, the agreement will require the formal consent of the European Parliament before it can enter into force. Simultaneously, Indian authorities are advancing their own domestic ratification procedures.

When was the India-EU FTA negotiated and when is it expected to take effect?

Negotiations for the FTA originally began in 2007, were suspended in 2013, and relaunched in 2022 before being successfully concluded in January 2026. The agreement is expected to be formally signed by the end of 2026 and is projected to come into force by later in 2026 or in the first half of 2027.

How will the India-EU FTA impact tariffs and trade duties for European exports?

The agreement will eliminate or reduce tariffs on 96% of EU goods exported to India. These tariff reductions are projected to save European companies approximately €4 billion per year in duties on their products. This will make it easier for European businesses to access the Indian market and compete on a level playing field.

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Pragya Bahuguna

Pragya Bahuguna is a digital journalist at News18.com, covering national and international news, including Indian politics and geopolitics, with an interest in environment and climate affairs. She hol…Read More

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