The EU–India trade agreement
After nearly two decades of negotiation, the EU and India concluded a free trade agreement on 27 January 2026. It changes the case for doing business between Europe and India, in both trade and investment.
The agreement at a glance
| Negotiations concluded | 27 January 2026 |
| Status | The European Commission sent its proposals for signature and conclusion to EU governments on 11 September 2026 |
| Signature | Expected by the end of 2026 |
| EU goods exports covered | Tariffs eliminated or reduced on 96.6% of EU goods exports to India |
| Indian goods exports covered | EU liberalisation covers 99.3% of imports from India |
| Duty savings for EU exporters | Around €4 billion a year, according to the European Commission |
| Trade today | Over €180 billion a year in goods and services |
| Market | India: about 1.45 billion people and the world's fourth-largest economy |
Why it matters
The EU is already India's largest trading partner, with €120 billion of goods traded in 2024. Services trade reached almost €60 billion the same year. Even so, Indian import duties of up to 44% on machinery, up to 110% on cars and up to 150% on wine have kept many European products out of reach of Indian buyers.
The agreement removes most of these barriers. The European Commission expects EU exports to India to double over time, and around 6,000 European companies already operating in India gain a more stable, predictable framework. For Indian exporters, the EU will remove tariffs on more than 90% of tariff lines, giving labour-intensive and manufacturing sectors easier access to a market of 450 million consumers.
What it covers
The agreement goes well beyond tariffs. Its chapters cover:
- Trade in goods: tariff elimination and reduction, some at entry into force and others phased in over up to ten years
- Services: preferential access to Indian services markets, including financial services and maritime transport
- Mobility of professionals: commitments the Commission describes as among the most ambitious either side has made
- Customs and rules of origin: simpler procedures and self-certification of origin
- Technical rules and food safety: clearer procedures, with EU food safety rules applying to all Indian imports
- Digital trade and intellectual property: protection for software source code, trademarks, designs and trade secrets
- Small businesses: a dedicated SME chapter and contact points on both sides
- Sustainable development: commitments on climate, labour rights and women's economic empowerment
Two related agreements are being negotiated separately: one on investment protection and one on geographical indications.
- What is in the EU–India trade agreementTariff cuts by sector, rules of origin, services, digital trade and more, chapter by chapter.
- Services and professionals under the EU–India agreementServices access, management and board rules, digital trade, and the mobility of professionals.
- EU–India trade agreement: timeline and next stepsFrom 2007 to conclusion in 2026, and the steps before it enters into force.
What it means for you
- The trade deal, for Indian exportersWhat gets cheaper to sell in Europe, and when.
- Expanding your Indian company into EuropeMarket entry into the EU for Indian companies: where to start, which model, and the first decisions.
- The trade deal, for European exportersIndian tariffs on cars, wine and machinery are coming down.
- Taking a European company to IndiaIndia is many markets. The decisions to make first.
How we can help
Companies preparing for the agreement can send their sector, products and target market to contact@euicci.com. We point you to the relevant schedules and official sources, and introduce you to advisers and partners who know the Indian or European market.
Quick answers
When was the EU–India trade agreement concluded?
Negotiations were concluded on 27 January 2026. The European Commission sent its proposals for signature and conclusion to EU governments on 11 September 2026, and signature is expected by the end of 2026.
When does the EU–India trade agreement enter into force?
After signature, the European Parliament must give its consent, the Council of the EU must conclude the agreement and India must ratify it. It enters into force once both sides have completed these steps.
How much will tariffs fall under the EU–India agreement?
India will cut or remove tariffs on 96.6% of EU goods exports, saving EU exporters around €4 billion a year. The EU's liberalisation covers 99.3% of imports from India.
What happens to Indian tariffs on European cars and wine?
Indian duties on cars fall from 110% to 10% within a quota of 250,000 vehicles. Duties on wine fall from up to 150% to between 20% and 30%.
Does the agreement cover services and professionals?
Yes. India binds its current openness in services and gives preferential access in sectors such as financial services and maritime transport. The agreement also includes commitments on the temporary movement of professionals.
Read next
- Taking a European company to IndiaIndia is many markets. The decisions to make first.
- How to set up in IndiaLiaison office, branch or subsidiary. What each can and can't do.
- Expanding your Indian company into EuropeMarket entry into the EU for Indian companies: where to start, which model, and the first decisions.
