The European Commission on Friday proposed that the European Union’s Council approve the signing and conclusion of the India-EU Free Trade Agreement (FTA), taking the landmark trade pact a step closer to formal signing and implementation.
The Commission said the proposed agreement, once approved and brought into force, would eliminate or reduce tariffs on 96% of EU goods exports to India and save European exporters around euro 4 billion a year in duties.
The EU and India already trade more than euro 180 billion worth of goods and services annually, supporting nearly 800,000 jobs in the EU, the Commission said. The agreement is expected to improve market access, reduce tariffs and other trade barriers, and provide greater predictability for trade and investment.
The Commission’s proposal will now go to the EU Council for approval. If authorised, the EU and India can sign the agreement. It will then require the consent of the European Parliament before the EU completes its internal procedures for the pact to enter into force. India is also undertaking its own internal procedures for ratification.
“This agreement brings together two of the world’s largest economies — a market of 2 billion people and around a quarter of global GDP. It will very soon start creating new opportunities for both trade and investment,” EU Trade Commissioner Maroš Šefčovič said.
The move comes nearly eight months after India and the EU concluded negotiations for the FTA on January 27, 2026, during the 16th India-EU Summit in New Delhi. The conclusion of negotiations was jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
The Commission said the agreement would also make it easier for European companies to access the Indian market and compete on a more level playing field, while giving consumers greater choice and potentially more competitive prices.
It said the proposal was being put forward under a fast-track procedure aimed at speeding up implementation of trade agreements amid geopolitical uncertainty and growing pressure on the global trading system.
