On 11 September, the European Commission submitted proposals to the Council to sign and conclude a Free Trade Agreement (FTA) between the European Union and India. Pending authorisation from the Council, this agreement could become the largest trade agreement between the EU and India.
Once adopted and in force, the FTA aims to enhance market access, reduce tariffs, eliminate unnecessary trade barriers, and provide clear rules for trade and investment between the EU and India.
Currently, trade between the EU and India exceeds €180 billion annually and supports approximately 800,000 jobs within the EU. Notably, the agreement is expected to eliminate or reduce tariffs on 96% of EU goods exported to India, resulting in an estimated annual savings of €4 billion in duties on European products.
This initiative will improve access for European companies in the Indian market, foster a more equitable competitive environment, and ultimately benefit consumers through more choices and better pricing.
Today’s proposal marks a significant step toward helping both consumers and businesses quickly realise the advantages of this agreement. It aligns with the expedited procedure outlined by Commissioner for Trade and Economic Security, Maroš Šefčovič, earlier this year—an approach that is particularly vital amid ongoing geopolitical uncertainties and pressures on the global trading system.
“Our focus has been clear from the start: to ensure that businesses and citizens feel the tangible benefits of this landmark FTA as quickly as possible. Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time. This agreement brings together two of the world’s largest economies — a market of 2 billion people and around a quarter of global GDP. It will very soon start creating new opportunities for both trade and investment,” stated Maroš Šefčovič, Commissioner for Trade and Economic Security, Interinstitutional Relations and Transparency.
The EU-India FTA exemplifies the EU’s commitment to strengthening economic relationships with key partners in the Indo-Pacific region. The Commission seeks the Council’s approval to sign the agreements, which will subsequently require the consent of the European Parliament before finalisation and implementation. Concurrently, Indian authorities are advancing their own internal ratification processes.
