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After years of negotiations marked by delays and false starts, India and the European Union have finally concluded a long-awaited free trade agreement (FTA), marking a major milestone in India’s global trade diplomacy. While the formal signing of the pact is scheduled for January 27, the agreement will come into force next year, after legal scrubbing, ratification by EU member states, and procedural approvals on both sides.
The breakthrough comes at a time of renewed strategic engagement between India and Europe due to US tariff threats. The deal was finalised in the presence of top EU leaders, who were special guests at India’s Republic Day celebrations. PM Narendra Modi said the presence as well as the day underscored the political significance attached to the agreement. Officials said much of the technical and legal work at will continue through next year before implementation begins.
The India-EU FTA is the fourth such trade agreement signed by India since 2025, following similar pacts with the United Kingdom, New Zealand, and Oman. Commerce and Industry Minister Piyush Goyal hailed the agreement as the “mother of all deals”, highlighting its scale, economic potential, and strategic importance. Once implemented, the pact is expected to deepen market access, boost bilateral trade and investment, and strengthen India’s integration with one of the world’s largest economic blocs.