The India-European Union Free Trade Agreement (India-EU FTA) is a comprehensive concept and a trade pact, concluded between the Republic of India and the European Union (EU) on January 27, 2026. Negotiations for the agreement, which has been called the "mother of all deals," began in 2007 under the framework of a Broad-based Trade and Investment Agreement (BTIA). Talks stalled in 2013 due to disagreements over tariffs and intellectual property rights, but were officially relaunched in July 2022 to liberalise trade and investment between the two economies.
The agreement works by establishing a framework for liberalising trade in goods and services, facilitating investment, and enhancing regulatory cooperation. Key provisions include phased tariff reductions, with the EU eliminating tariffs on over 99% of Indian exports by value, and India reducing or eliminating tariffs on over 96% of EU goods. For example, India will gradually reduce the duty on imported European cars to 10% from up to 110% for 2.5 lakh vehicles a year. The pact also covers services, with India securing access to 144 EU services sub-sectors and opening 102 sub-sectors to the EU. A chapter on Rules of Origin (RoO) ensures that preferential tariffs apply only to goods genuinely produced in India or the EU.
The FTA connects to parallel negotiations for an Investment Protection Agreement (IPA) and an agreement on Geographical Indications (GIs). It is also linked to connectivity initiatives like the India-Middle East-Europe Economic Corridor (IMEC). The most significant recent change is the conclusion of negotiations on January 27, 2026, after a stall since 2013, though the agreement is still subject to legal vetting and internal approvals before its projected entry into force in early 2027.