India and the European Union (EU) are expected to formally sign their long-awaited Free Trade Agreement (FTA) by December this year, with the pact likely to come into force by February-March 2027, Union Commerce and Industry Minister Piyush Goyal said on Sunday.
Addressing chartered accountants at an event in Mumbai, Goyal said the agreement would significantly enhance India’s access to European markets by reducing tariffs on a wide range of goods and services. He noted that the FTA would provide duty-free access for a substantial share of Indian exports, creating new opportunities for businesses, manufacturers and exporters.
“Almost the entire European market will be open for us,” Goyal said, expressing confidence that the agreement would strengthen trade and investment ties between India and the European Union.
The announcement comes nearly five months after India and the EU concluded negotiations on the landmark trade pact on January 27, 2026. The agreement, described by policymakers as the “mother of all deals”, is regarded as one of the most significant trade arrangements negotiated by India in recent years.
The proposed FTA is expected to reduce or eliminate tariffs on a majority of traded goods, improve market access for businesses, encourage investment flows and deepen cooperation in sectors such as manufacturing, services, technology and innovation.
The European Union remains one of India’s largest trading partners, with bilateral trade witnessing steady growth over the past decade. Officials believe the agreement will further strengthen economic ties and enhance opportunities for businesses on both sides.
The trade pact is expected to provide a major boost to bilateral trade, improve competitiveness for Indian exporters and reinforce strategic economic cooperation between India and the 27-member European bloc amid changing global trade dynamics.
Once signed, the agreement will undergo the necessary ratification procedures before becoming operational, with implementation expected by early 2027.
