The India-EU Free Trade Agreement (FTA) is a comprehensive trade agreement concluded between the Republic of India and the European Union (EU). It is a type of international treaty that aims to liberalize trade and investment between the two economies. The negotiations were originally launched in 2007 under the framework of a Broad-based Trade and Investment Agreement (BTIA). Talks stalled in 2013 due to disagreements over issues like tariffs and market access. The negotiations were officially relaunched in July 2022 and were concluded on January 27, 2026, following nearly two decades of effort.
The agreement works by eliminating or reducing tariffs on a wide range of goods and services. Key provisions include India offering preferential access for over 99% of its exports to the EU. India will eliminate or reduce tariffs on over 96% of EU goods exports. For instance, tariffs on spirits will be cut to 40%, and duties on up to 250,000 imported cars from the EU will be lowered. The pact covers areas like trade in goods and services, intellectual property rights, and a dispute settlement mechanism. The India-EU FTA is part of a broader engagement that includes separate, ongoing negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications (GIs). The EU is India's largest trading partner, accounting for 11.5% of total Indian trade in 2024. The agreement is not yet in force, as it requires ratification by the Council of the European Union, the European Parliament, and the Union Council of Ministers in India.