India and the European Union are moving closer to a historic trade milestone. Below is a detailed update on the India-EU Free Trade Agreement, its timeline, scope, and global importance.
On February 10, Commerce Secretary Rajesh Agrawal announced that India and the EU would begin the process of signing and implementing their Free Trade Agreement (FTA) within a year.
India-EU Free Trade Agreement Timeline Announcement
Speaking at BIOFACH 2026’s inauguration in Nuremberg, Agrawal said officials from both sides have referred to the agreement as the “mother of all trade treaties” since it encompasses over one-fourth of the world’s economy and a population of almost two billion people.
🌍 India-EU Free Trade Agreement Highlights
- Agreement Type: Free Trade Agreement (FTA)
- Countries Involved: India & European Union
- Global Coverage: Over 25% of world economy
- Population Impact: Nearly 2 billion people
- Status: Signing & implementation within one year
- Official Description: “Mother of all trade treaties”
Negotiations and Revival of the Trade Deal
On February 27, India and the EU declared that the FTA negotiations were over. After almost ten years, the parties decided to continue negotiations in 2022. The agreement addresses investment, sustainability, regulatory cooperation, and commerce in goods and services.
Geopolitical Importance of the India-EU Free Trade Agreement
According to Agrawal, the India-EU free trade agreement takes on more importance during a period of increased economic and geopolitical unpredictability.”The India-EU Free Trade Agreement gives hope that a significant portion of global trade may continue within a rules-based framework during times of global unrest,” he continued.
💼 India-EU Trade & Economic Impact
- Annual Trade: Over €120 billion
- EU Status: India’s largest trading partner
- Trade Coverage: Goods & services
- Key Areas: Investment, sustainability, regulation
- Global Role: Rules-based international trade stability
India-EU Bilateral Trade Relationship
With yearly bilateral commerce in products and services over €120 billion, the European Union is India’s biggest commercial partner.
Frequently Asked Questions (FAQs)
1. What is the India-EU Free Trade Agreement?
The India-EU Free Trade Agreement is a comprehensive trade pact covering goods, services, investment, and regulatory cooperation between India and the European Union.
2. When will the India-EU Free Trade Agreement be implemented?
According to Commerce Secretary Rajesh Agrawal, the agreement is expected to be signed and implemented within one year.
3. Why is the India-EU Free Trade Agreement important?
The agreement covers over one-fourth of the global economy and supports rules-based trade during geopolitical uncertainty.
4. How long did India-EU FTA negotiations take?
Negotiations spanned nearly a decade and were revived in 2022 before concluding in 2026.
5. What is the current trade value between India and the EU?
Annual bilateral trade between India and the EU exceeds €120 billion.
Disclaimer: This article is based on publicly available information and official statements. It is intended for informational purposes only.
