New Delhi: The India-European Union (EU) Free Trade Agreement (FTA) talks finally concluded on Monday and the formal implementation of the deal is likely to happen next year, commerce secretary Rajesh Agrawal said.
“Negotiations have been successfully concluded. The deal has been finalised,” he said, as per The New Indian Express.
While the deal will be announced on Tuesday, processes like legal scrubbing, signing and most importantly ratification by EU member states may take another year, officials in the commerce ministry have said.
In 2025, India signed FTAs with the UK, New Zealand and Oman.
Monday’s deal was closed in the presence of European Council President António Costa and European Commission President Ursula von der Leyen, who have come to India as special guests for the Republic Day celebrations.
“Their presence underscores the growing strength of the India-EU partnership and our commitment to shared values. The visit will add momentum to the deepening engagement and cooperation between India and Europe across diverse sectors,” Prime Minister Narendra Modi had posted.
Commerce minister Piyush Goyal has called this the ‘mother of all deals’ and not without reason. The India-EU FTA will be signed after nearly two decades of talks, which began as early as 2007. However, the talks were suspended in 2013 as both sides opted for certain protectionist measures. The negotiations were relaunched in June 2022.
Now, both sides have hinted that the deal will be finally signed on Tuesday.
“The European Union remains a vital economic and strategic partner for India, and we value our shared commitment to a mutually beneficial, ambitious India-EU FTA for the prosperity of our businesses and people,” Goyal stated in his social media post.
Both sides have agreed to keep certain sensitive sectors out of the trade deal, the Ministry of Commerce confirmed. India has maintained its protectionist stance for the dairy and agricultural sectors.
“A successful India makes the world more stable, prosperous and secure. And we all benefit,” Von der Leyen said on Monday. She even said that the engagement between India and the EU “will culminate tomorrow in the signature of our Security and Defence Partnership”.
India has a trade surplus with the EU, which stood at nearly $15 billion in FY2025, with exports of $75.9 billion against imports of $60.7 billion. The EU accounts for about 17% of India’s total goods exports and one-third of its IT services exports.
The FTA is estimated to boost India’s exports to the region by over 50% in the next five years, some analysts believe.
