New Delhi: India’s long-awaited Free Trade Agreement (FTA) with the European Union is set to unlock export opportunities worth nearly ₹6.4 lakh crore, as Indian goods will now gain seamless access to all 27 EU member nations under a single trade regime, Union Commerce and Industry Minister Piyush Goyal said on Tuesday.
Calling it a major breakthrough for Indian industry, Goyal said the agreement would directly benefit export-driven states such as Gujarat, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Rajasthan, Punjab, Telangana, Andhra Pradesh, West Bengal, Assam and Kerala, where manufacturing, agriculture and labour-intensive industries form the backbone of the economy.
It is a statement on the depth of the India-EU partnership.#IndiaEUTradeDeal pic.twitter.com/rM2hqH86gL
— Piyush Goyal (@PiyushGoyal) January 27, 2026
The historic pact was formally announced at the 16th India–EU Summit by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, marking a new chapter in bilateral economic ties.
Two Decades of Talks, One Landmark Deal
Negotiations on the India–EU FTA began more than 20 years ago and were revived in 2022 after a long pause. The final agreement comes at a time when global trade is under stress due to rising protectionism, fragile supply chains and prolonged geopolitical conflicts.
Together, India and the EU represent two of the world’s largest economies — accounting for about one-fourth of global GDP and nearly one-third of international trade — making this one of the most significant trade partnerships in recent years.
India is set to reap major benefits from the #IndiaEUTradeDeal,with access to 27 European Union markets expected to boost exports by ₹6.4 lakh crore. States including Punjab,Rajasthan, Gujarat, Maharashtra,Karnataka,Kerala, Assam,West Bengal,Telangana & Tamil Nadu stand to gain. pic.twitter.com/I35YjJnmBk
— Ministry of Ayush (@moayush) January 27, 2026
Major Relief for Labour-Intensive Sectors
The FTA is expected to dramatically improve market access for Indian exporters across key sectors, including:
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Textiles and apparel
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Engineering goods
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Pharmaceuticals and medical devices
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Electronics and chemicals
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Plastics and rubber
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Marine products
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Leather and footwear
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Gems and jewellery
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Handicrafts, tea, spices and farm produce
Once implemented, tariffs of up to 10 per cent on nearly USD 33 billion worth of labour-intensive exports will be phased out, significantly improving India’s competitiveness in the European market.
‘Balanced and Win-Win’: Goyal
Addressing a joint press conference in New Delhi, Goyal described the pact as a “balanced, fair and win-win agreement” for businesses on both sides. He said the final push for the deal came after high-level EU trade engagements earlier this year, reflecting strong political commitment from both partners.
“The India–EU FTA opens up a vast range of opportunities for trade, investment and industrial growth,” the minister said.
Implementation Expected in 2026
The agreement will now undergo legal vetting and translation into 24 European languages. Goyal said the government is working on a fast-track process and expressed confidence that the FTA will come into force within the 2026 calendar year.
With a unified European market now within reach, Indian exporters are expected to gain a powerful edge, positioning India as a stronger global manufacturing and trading hub.
