India and the European Union have successfully concluded negotiations on a long-awaited free trade agreement, marking a major milestone in their bilateral economic trade and strained ties with the United States.
The agreement is expected to significantly enhance trade flows, strengthen supply chains, and deepen strategic cooperation between the two economies. It covers a broad range of sectors, including goods, services, digital trade, investment protection, and sustainability commitments. Officials familiar with the discussions said both sides made key compromises to overcome longstanding differences over tariffs, regulatory standards, and market access. Once implemented, the deal is set to reduce or eliminate duties on a majority of traded goods over a phased period.
The timing of the agreements is notable, as both India and the EU seek to diversify economic partnerships in response to shifting geopolitical dynamics and disruptions in global trade. With trade relations with the US under increasing strain, New Delhi and Brussels have accelerated efforts to secure stable, long-term trade arrangements. European negotiators secured improved access to India’s vast consumer market for automobiles, industrial goods, wine, and spirits. In return, India gained commitments on services access, smoother mobility for professionals, and enhanced cooperation in clean energy, technology, and digital infrastructure.
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The final legal text will now undergo internal approval processes, including review by the European Parliament and India’s cabinet, before formal signing and ratification. Once enforced, it will rank among the EU’s most significant trade deals in Asia to date.
