The India-EU trade deal is likely to be finalised by next week after — paving the way for lower tariffs on European cars and wine and an expanded market for Indian electronics, textiles and chemicals. The long-sought free trade agreement will significantly expand bilateral trade and boost US tariff-hit Indian exports.
According to a Reuters update quoting government sources, the two countries are expected to announce the conclusion of protracted negotiations on Tuesday. The announcement could follow Prime Minister Narendra Modi‘s meeting with European Council President Antonio Costa and European Commission President Ursula von der Leyen. The three leaders will co-chair an India-EU summit during their visit to India from January 25 to 28.
The trade pact will have to be formalised once talks conclude — before being ratified by the European Parliament. The process is likely to take at least a year before the pact can be implemented. Negotiations were relaunched in 2022 after a nine-year pause, gaining traction last year amid rising trade tensions.
Von der Leyen signalled progress during the ongoing World Economic Forum in Davos —stating that the EU was close to a final agreement. She also acknowledged that additional work remained. A vote by EU lawmakers earlier this week to challenge the EU-South America pact in the bloc’s top court highlights how parliamentary hurdles could delay or complicate ratification.
Investment protection and geographical indications (GIs) are being negotiated separately, narrowing the FTA’s focus to goods, services and trade rules.
Nine trade agreements in four years
New Delhi has made a vehement push to secure market access as global trade turns more protectionist in recent years. The India-UK Free Trade Agreement was finalised last year in July and eliminated tariffs on nearly 99% of Indian goods. New Delhi also signed comprehensive economic partnership agreements with Oman last month — granting duty-free access for 98% of Indian exports such as textiles and gems. Implementation is expected in early 2026
