India and EU Near Trade Deal, Awaiting Final Approval

7:14 PM ETDeveloping

Politics Desk

In Short: The European Commission has forwarded its proposal for a Free Trade Agreement (FTA) between the EU and India to the European Council, signaling the deal could soon be officially signed.

The European Commission has forwarded its proposal for a Free Trade Agreement (FTA) between the European Union and India to the European Council, a clear indication that the deal could be officially signed soon. According to the European Union, if authorised by the Council, this will be the largest trade agreement ever concluded by both parties.

The FTA is expected to improve market access, reduce tariffs, and tackle unnecessary trade barriers between the EU and India. It will eliminate or reduce tariffs on 96% of EU goods exports to India, saving around €4 billion per year in duties on European products. This agreement will make it easier for European companies to access the Indian market and compete on a more level playing field, while consumers will benefit from increased choices and more competitive prices.

However, both New Delhi and Brussels have been trying to restrict Chinese products in strategic sectors. India is opening its automobile sector for developed countries in free trade agreements and continues to impose over 100% duty on imported automobiles from China. According to a 2025 report by the Delhi Policy Group (DPG), both India and the EU remain significantly dependent on China. One of the key reasons for India-EU to restart negotiations in 2022 was China's growing trade surplus, which reflects Beijing's tightening grip on the manufacturing supply chain despite trade friction with the US.

For India, the FTA will help secure market access for more than 99% of exports by trade value to the EU. The European Council defines the general political direction and priorities of the European Union, while the European Commission, the EU's main executive body, proposes the FTA legislation. The members of the European Council, comprising heads of state or government of the 27 EU member states, the European Council President, and the President of the European Commission, take the final decision. Authorities in India are also going through their own internal ratification procedures.

What's still developing

Beyond goods, it unlocks high-value commitments in services complemented by a comprehensive mobility framework enabling seamless movement of skilled Indian professionals, India’s Commerce and industry Ministry said.
The ministry said India–EU FTA gives a boost to labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles bringing down tariffs up to 10% on almost $33 billion of exports to zero on entry into force of the agreement.
Professional Experience: Prior to joining The Indian Express, Mishra built a robust portfolio working with some of India's leading financial news organizations.
Much like other parts of the world, EU and India import most of their industrial requirements from China.

Sources

Theglobeandmaillink