It is expected that this agreement will double EU exports of goods to India by 2032.
European Commission
After several rounds of negotiations, the European Union (EU) and India have signed a free trade agreement (FTA) that will benefit a total of 2 billion people economically.
It is the first time in history that both parties have signed an agreement of this magnitude, which is why the EU has described it as historic, ambitious, and of major commercial significance.
"We have sent a signal to the world that rules-based cooperation still delivers great outcomes. And, best of all, this is only the start - we will build on this success, and grow our relationship to be even stronger," assured European Commission President, Ursula von der Leyen.
It is expected that this agreement will double EU exports of goods to India by 2032. At present, trade already amounts to more than €180 billion per year in goods and services.
The plan is to eliminate or reduce tariffs covering 96.6% of the value of EU exports to India. This will help save around €4 billion per year in duties on European products.
Additionally, Commissioner for Agriculture and Food Christophe Hansen noted: "As in any trade agreement, our high food safety standards are fully maintained. The safety of EU consumers is non-negotiable."
In terms of sustainability and environmental protection, the EU and India will sign a Memorandum of Understanding to establish cooperation and support in response to climate urgency, starting in the first half of 2026.
In addition, the EU plans to provide India with €500 million over the next two years to help reduce greenhouse gas emissions and accelerate its long-term sustainable industrial transformation.
Finally, when setting the guidelines of the agreement, the situation of SMEs was taken into account in order to promote their stability and predictability by eliminating regulatory barriers and supporting transparency.
On October 1, 2025, the Trade and Economic Partnership Agreement (TEPA) between the European Free Trade Association (EFTA) states—Iceland, Liechtenstein, Norway, and Switzerland—and India entered into force.
Furthermore, the Icelandic Government stated that there are intentions to increase cooperation in the fisheries sector, including fisheries management, the full utilization of catches, and innovation in the sector.