FTA with EU to boost India's exports to 27-nation bloc
Negotiations at final stage; if finalised, this will be the 19th trade deal for India
image for illustrative purpose
New Delhi: India and the European Union (EU) are negotiating a free trade agreement (FTA). Negotiations have reached the final stage. If finalised, this will be the 19th trade deal for India. The FTA is expected to help boost the country's exports to the 27-nation bloc.
Since 2014, India has finalised seven trade pacts -- Mauritius (April 2021 implemented), Australia (December 2022 implemented), UAE (May 2022 implemented), Oman (signed in December 2025), UK (signed in July 2025), EFTA (implemented in October 2025 - Switzerland, Iceland, Liechtenstein, Norway), and New Zealand (talks concluded in December 2025).
The imposition of high tariffs by the US has disrupted the global flow of goods. India is facing steep 50 per cent tariffs. The FTA is expected to help Indian exporters diversify their shipments. It will also help reduce dependence on China.
Benefits for India and the EUTariffs or import duties are either reduced or eliminated under an FTA. Therefore, an FTA will open markets, align regulations between the two, and benefit key industries like technology, pharmaceuticals, automobiles, and textiles.
Lower duties will make Indian exports, including from labour-intensive sectors, such as garments, leather, pharmaceuticals, steel, petroleum products, and electrical machinery, more competitive in the EU. Similarly, Indian services exports, including telecommunications, business services, and transport, are also expected to grow significantly. According to think tank GTRI, the EU will benefit from higher exports of aircraft and parts, electrical machinery, diamonds, and chemicals to India. European service sectors such as intellectual property, business services, and IT and telecommunications may also see gains.
The FTA will significantly boost two-way trade between India and the EU. India's bilateral trade in goods with the EU was $ 136.53 billion in 2024-25 (exports worth $ 75.85 billion and imports $ 60.68 billion), making it the largest trading partner for goods.
The EU market accounts for about 17 per cent of India's total exports, and the bloc's exports to India constitute 9 per cent of its total overseas shipments.
The FTA will significantly boost two-way trade between India and the EU. India's bilateral trade in goods with the EU was $ 136.53 billion in 2024-25 (exports worth $ 75.85 billion and imports $ 60.68 billion), making it the largest trading partner for good
