New Delhi: The historic India-EU Free Trade Agreement, formally concluded at a high-level summit in New Delhi after nearly two decades of negotiations, is poised to transform bilateral economic engagement and unlock significant commercial and investment opportunities for producers and investors on both sides, Union Commerce Minister Piyush Goyal said on Tuesday.
Speaking to reporters after the formal announcement of the pact — often referred to by leaders as the “Mother of All Deals” — Goyal described the agreement as “win-win for all sections of industry in India as well as Europe,” underlining its balanced nature and broad-based benefits across manufacturing, services and trade.
The FTA is expected to grant India unprecedented market access to the EU, with preferential or zero duties on over 99% of Indian exports by value, marking a significant advance for Indian exporters across labour-intensive and high-growth sectors.
According to government officials, the deal will spur two-way trade and investment flows, deepen economic integration and enable firms from both India and the EU to compete more effectively in global markets. This is likely to catalyse expansions in sectors ranging from automobiles, textiles, chemicals, electronics, pharmaceuticals and gems and jewellery to services and digital trade.
Industry analysts say the pact’s framework — which goes beyond tariffs to include regulatory cooperation, standards alignment and mobility provisions for professionals — could help reduce input costs, streamline customs procedures and reinforce supply chains linking India and major European markets.
The agreement also signals a boost for investment flows between the two regions as companies reassess global supply chains amid rising trade tensions and protectionist pressures in other major markets. European firms could deepen their footprint in India’s fast-growing economy, while Indian companies stand to scale up presence in Europe’s high-value markets.
Government sources said the pact is expected to be implemented within the calendar year 2026, following legal review and ratification procedures in both India and the European Union, with formal signing anticipated later this year.
Prime Minister Narendra Modi and EU leaders have hailed the agreement as a strategic milestone — one that not only elevates economic ties but also sets the stage for deeper cooperation on investment, standards, green technologies and people-to-people links in the decade ahead.
Economists say while tariff cuts will benefit exporters and consumers, the broader success of the FTA will hinge on effective implementation of regulatory and mobility commitments, close alignment on intellectual property and digital trade frameworks, and sustained investment flows that reinforce bilateral industrial integration.
Overall, the India-EU FTA is seen by policymakers and industry as a major structural shift in India’s global trade outlook — one that strengthens economic resilience, expands market access and underpins future-ready growth in a rapidly evolving global economy.