EU Press Release, Dated 27-01-2026
1. Introduction: EU–India Conclude Landmark Free Trade Agreement
The European Commission has issued a press release dated 27 January 2026 announcing the successful conclusion of negotiations between the European Union and India for a comprehensive Free Trade Agreement (FTA). The agreement has been described as the most ambitious and commercially significant trade deal concluded by either party to date.
2. Tariff Liberalisation And Trade Impact
Under the agreement, tariffs will be eliminated or reduced on 96.6% of EU goods exports to India, resulting in estimated annual duty savings of approximately €4 billion. The European Commission projects that EU goods exports to India could double by 2032. Key liberalisation measures include a gradual reduction of tariffs on motor vehicles from 110% to as low as 10%, along with full abolition of tariffs on most machinery, chemicals, pharmaceuticals, and car parts within defined timelines.
3. Market Access For Services And Investment
The FTA grants unprecedented market access to EU service providers, particularly in sectors such as financial services, maritime transport, and other professional services. The agreement also strengthens the protection of intellectual property rights, simplifies customs procedures, and introduces dedicated support measures for small and medium-sized enterprises (SMEs) to enhance their participation in cross-border trade.
4. Sustainability, Safeguards And Sensitive Sectors
The press release clarifies that sensitive agricultural products have been excluded from tariff liberalisation. EU health and food safety standards will continue to apply fully to imports, and robust rules of origin will be enforced to prevent misuse of tariff preferences. The agreement also includes binding commitments on trade and sustainable development, reinforcing environmental and labour standards.
5. Conclusion: Next Steps Before Entry Into Force
On the EU side, the negotiated draft texts will be published, followed by legal revision and translation into all official EU languages. The agreement will then be submitted to the Council for adoption and signature, require consent from the European Parliament, and conclude with a final Council decision. The FTA will enter into force only after these steps are completed and following ratification by India. Parallel negotiations on a separate Geographical Indications agreement are ongoing to complement the market access framework.
