India-European Union Free Trade Agreement (India-EU FTA)
Concluded 27 January 2026 at India-EU Summit, Hyderabad House, New Delhi. World's largest FTA: 2 billion people, ~25% of global GDP Goods trade (2024-25): USD 137 billion | Services: USD 83 billion EU access for 99% of Indian exports by value EU tariff concessions covering almost 97% of tariff lines and more than 99% of trade value Savings: Up to EUR 4 billion/year in duties Cars: India cuts 110% to 10% over 5 years; 250,000 EU vehicles/year India gains: Zero-duty for textiles, leather, footwear, gems Negotiations: Started 2007, concluded after ~19 years Pending: EU Council, European Parliament, India Council of Ministers
- India-EU FTA concluded on 27 January 2026 at the India-EU Summit, Hyderabad House, New Delhi — the world's largest FTA covering 2 billion people and approximately 25% of global GDP.
- Goods trade (2024-25) valued at USD 137 billion and services at USD 83 billion; EU provides market access for 99% of Indian exports by value.
- EU tariff concessions cover almost 97% of tariff lines and more than 99% of trade value, with potential savings of up to EUR 4 billion per year in duties.
- India cuts car import duty from 110% to 10% over 5 years for up to 250,000 EU vehicles per year; India gains zero-duty access for textiles, leather, footwear, and gems.
- Negotiations started in 2007 and concluded after approximately 19 years; pending ratification by EU Council, European Parliament, and India Council of Ministers.
When and where was the India-EU FTA concluded?
The India-EU Free Trade Agreement was concluded on 27 January 2026 at the India-EU Summit held at Hyderabad House, New Delhi.
How large is the India-EU FTA in global terms?
It is described as the world's largest FTA, covering about 2 billion people and roughly 25% of global GDP, making it a landmark bilateral trade pact.
What market access does the FTA provide for Indian exports?
The EU will grant market access for 99% of Indian exports by value and eliminate tariffs on 96.6% of goods entering from India under the agreed terms.
How will tariffs on cars change under the India-EU FTA?
India will cut car duties from 110% to 10% over 5 years, with a quota of 250,000 EU vehicles per year being allowed under the deal.
Which Indian sectors gain zero-duty access to the EU market?
Indian textiles, leather, footwear, and gems secure zero-duty access to the EU market, giving a major boost to labour-intensive export sectors.
What approvals are still pending for the India-EU FTA?
The deal still requires ratification by the EU Council, the European Parliament, and the India Council of Ministers before entering into force.
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