EU-India FTA: European Commission sends landmark trade deal to council for signature, paving way for ratification

The European Commission has put forward its proposals to the Council of the European Union seeking authorisation to sign and conclude the Free Trade Agreement (FTA) between the EU and India, according to a Commission press release.

If the Council grants approval, it will become the largest trade agreement either side has ever concluded.

Once adopted and in force, the agreement will widen market access, cut tariffs, tackle non-tariff barriers, and provide predictable rules for trade and investment between the two sides. The EU and India already trade goods and services worth over €180 billion a year, supporting close to 800,000 EU jobs.


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The deal will eliminate or reduce tariffs on 96% of EU goods exports to India, saving European exporters an estimated €4 billion a year in duties, while giving consumers on both sides more choice and more competitive prices.

The Commission said this step is part of a fast-track procedure for finalised trade deals set out earlier this year by the EU's Commissioner for Trade and Economic Security, Maroš Šefčovič, aimed at speeding up FTA implementation at a time of geopolitical uncertainty and pressure on the global trading system.

Next steps

The proposal now goes to the Council, which must authorise the signature and conclusion of the agreement. Once cleared, the EU and India can sign it, after which it needs the European Parliament's consent before conclusion and entry into force. India is separately carrying out its own internal ratification process.

EU-India FTA

Negotiators concluded the FTA on January 27, 2026, at the 16th India-EU Summit in New Delhi. Talks were first launched in 2007, suspended in 2013, and relaunched in 2022, with the 14th and final formal negotiating round held in October 2025. European Commission President Ursula von der Leyen and European Council President António Costa attended India's Republic Day celebrations as chief guests on January 26, 2026, before co-chairing the summit with Prime Minister Narendra Modi.

According to the Commission, the deal is expected to double EU goods exports to India by 2032 and give the EU tariff concessions India has not extended to any other trade partner. Tariffs on automobiles will come down gradually from 110% to as low as 10%, while tariffs on car parts will be eliminated entirely over five to ten years. Tariffs of up to 44% on machinery, 22% on chemicals and 11% on pharmaceuticals will also be mostly removed.

On the agricultural side, average tariffs above 36% will be reduced, with wine tariffs cut from 150% to 75% at entry into force and eventually to 20%, olive oil tariffs phased out from 45% to zero over five years, and tariffs of up to 50% on processed goods such as bread and confectionery eliminated. Sensitive sectors including beef, chicken meat, rice, sugar and ethanol have been excluded from liberalisation to protect farmers on both sides, and all imports will still need to meet EU food-safety standards.

Also read: India, EU aim to complete FTA legal scrubbing in 15-20 days, says Piyush Goyal

The agreement also expands EU access to India's services market, including financial services and maritime transport, with the Commission describing it as India's most ambitious financial-services opening in any trade pact so far. It includes stronger enforcement of intellectual property rights covering copyright, trademarks, designs, trade secrets and plant varieties, along with a dedicated sustainable development chapter addressing climate, labour and gender provisions.

The Commission noted that separate negotiations on a Geographical Indications agreement and an Investment Protection Agreement between the EU and India are continuing alongside the FTA.