India and the European Union are expected to sign their long-awaited Free Trade Agreement (FTA) by December 2026, with the landmark pact likely to come into force between February and March 2027, Union Commerce and Industry Minister Piyush Goyal said on June 21.
Speaking during an interaction with chartered accountants in Mumbai, Goyal said the agreement would provide Indian exporters with unprecedented access to the European market, with tariffs expected to fall to near-zero levels for a vast majority of Indian exports.
“Now, with almost zero duty, almost the entire European market will be open for us. The EU’s FTA will be signed by December and will be effective by February-March,” Minister Goyal said.
The minister’s remarks provide the clearest indication yet of the timeline for one of India’s most ambitious and strategically significant trade agreements.
Duty-Free Access for 93% of Indian Exports
The proposed India-EU FTA is expected to grant duty-free access to nearly 93 per cent of Indian exports to the 27-member European bloc, significantly improving the competitiveness of Indian products in one of the world’s largest consumer markets.
The agreement is expected to benefit a broad range of sectors, including textiles and apparel, pharmaceuticals, engineering goods, chemicals, gems and jewellery, leather products, agricultural goods and processed foods.
In return, India is expected to reduce tariffs on a number of European products, including premium automobiles and wines, making those imports more affordable in the domestic market.
According to Minister Goyal, the agreement will effectively open almost the entire European market to Indian exporters.
One of the World’s Largest Trade Partnerships
The scale of the proposed agreement underscores its importance for both sides.
Together, India and the European Union account for around 25 per cent of global gross domestic product (GDP) and nearly one-third of global trade. The combined economic weight of the two partners makes the India-EU FTA one of the most consequential trade agreements currently under negotiation globally.
The pact is expected not only to boost bilateral trade and investment flows but also to strengthen supply-chain resilience, support economic diversification and deepen cooperation in emerging sectors.
‘Mother of All Deals’ Reaches Final Stage
India and the European Union announced the conclusion of negotiations for the agreement on January 27, 2026, ending years of discussions on market access, services, investment, sustainability standards and regulatory cooperation.
Officials involved in the negotiations have described the pact as the “mother of all deals” because of its breadth and complexity.
The agreement covers a wide range of areas, including trade in goods and services, investment facilitation, digital trade, intellectual property, sustainable development and regulatory cooperation.
The conclusion of negotiations earlier this year was seen as a major breakthrough in India-EU economic relations and a signal of both partners’ intent to strengthen strategic and commercial ties amid shifting global trade dynamics.
Momentum Builds After G7 Discussions
The latest timeline comes shortly after Prime Minister Narendra Modi held discussions with Ursula von der Leyen and António Costa on the sidelines of the G7 Summit.
The leaders reviewed progress on the trade agreement and discussed ways to accelerate broader economic cooperation between India and the European Union.
President Von der Leyen also reiterated the commitment to complete the process before the end of the year. “Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year,” she said.
In addition to the FTA, the leaders discussed advancing a bilateral investment agreement, strengthening security and defence cooperation, and accelerating work on the India-Middle East-Europe Economic Corridor (IMEC).
India Pursues Broader Trade Agenda
Minister Goyal also indicated that India’s broader trade engagement with major global economies continues to gather momentum.
During the Mumbai interaction, he said United States Trade Representative Jamieson Greer is expected to visit India this week for discussions on the proposed India-US trade agreement.
“The whole world is looking towards India,” Minister Goyal said.
With the India-EU FTA now entering its final legal and procedural stages, the agreement is expected to become one of the largest trade accords ever signed by India. Once implemented, it is likely to provide Indian businesses with significantly enhanced access to the European market while reinforcing the broader India-EU strategic partnership across trade, investment, technology and connectivity.
