India and EU Conclude Long-Pending Free Trade Agreement, Says Commerce Secretary

India's Commerce Secretary Rajesh Agrawal announced that negotiations for the long-pending Free Trade Agreement (FTA) between India and the European Union (EU) have been successfully concluded. The landmark deal, often described as the "mother of all deals" by Commerce and Industry Minister Piyush Goyal, marks the end of nearly 18 years of intermittent talks—initially launched in 2007, suspended in 2013, and relaunched in June 2022.

Agrawal described the agreement as "balanced, forward-looking, and mutually beneficial," emphasizing its role in deepening economic integration, boosting bilateral trade, and attracting greater investment flows between the two sides. The FTA is expected to cover over 90% of goods with reduced or eliminated tariffs, liberalize services trade in sectors like telecommunications and professional services, and create a vast free trade area encompassing roughly 2 billion people and a significant share of global GDP. Key concessions include India agreeing to slash import duties on certain EU-made cars (from up to 110% to 40% initially for models priced above €15,000, with further phased reductions), while sensitive sectors such as agriculture have been excluded or protected to safeguard domestic interests.

The announcement comes amid high-level diplomatic engagements, with European Commission President Ursula von der Leyen and European Council President Antonio Costa in New Delhi as chief guests for India's 77th Republic Day celebrations on January 26. The formal declaration of the concluded negotiations is anticipated during the 16th India-EU Summit on January 27, 2026, coinciding with ongoing Republic Day events. Legal scrubbing of the text is underway, with both sides aiming for an early signing later in 2026 and potential entry into force in early 2027, subject to approvals—including from the European Parliament and India's Union Cabinet.

This breakthrough follows recent EU trade pacts with Mercosur, Indonesia, Mexico, and others, and aligns with India's push for multiple FTAs (including with the UK, New Zealand, and Oman) to counter global protectionism and diversify market access. EU Trade Commissioner Maroš Šefčovič hailed it as a major opening of the Indian market for European firms, while von der Leyen noted that a "successful India" contributes to global stability and prosperity.