New Delhi: On December 16, India is scheduled to sign its free trade agreement (FTA) with the European Union in Brussels, where it will be implemented in early 2027. Sources close to the Indian government said PM Modi is likely to attend the ceremony.
The signing date comes after a critical procedural step. The European Commission earlier this month launched the EU Council’s consideration of the text of the deal in preparation for a signing next December. If the Council gives it the go-ahead, it will be the biggest trade deal either side has ever signed, the Commission said.
The India-EU summit in New Delhi on January 27, which had been ongoing for almost 20 years, concluded its negotiations. Since then, both parties have been scrubbing the text through the legal process. President of the European Commission Ursula von der Leyen has termed it “the mother of all deals.
The tariff offers are unequal in size. India has committed to tariff concessions on 86 per cent of the tariff lines, while the EU has been doing so on 97 per cent. The agreement should reduce import tariffs on European wine and vehicles for India, but is unlikely to go so far as to include its commitments on dairy products and cereals due to domestic sensitivities. Brussels has targeted to double the exports of goods from Europe to India by 2032.
The game stakes are high for both players. India has a trade surplus of around $6 billion with the EU in 2025-26, while EU imports are valued at approximately $66 billion. The agreement is also timely as both economies seek to broaden their trade partners in today’s uncertain global climate. The two sides also agreed on a framework for further cooperation in the field of defence and security and a separate agreement for facilitating mobility for experts and students.
Signing won’t be the last step. The agreement has to be approved by the European Parliament before it becomes effective, so the initial impact is likely to be felt by businesses in early next year.
