India and EU Set to Sign Landmark Free Trade Agreement by December 2025
India and the European Union are poised to finalize their long-awaited free trade agreement (FTA) by December 2025, with the pact expected to take effect between February and March 2027, according to commerce and industry minister Piyush Goyal. Addressing chartered accountants in Mumbai, Goyal stated that the agreement would grant Indian exporters significantly improved access to the European market, with almost zero duties on the majority of exports.
"Now, with almost zero duty, almost the entire European market will be open for us. The EU's FTA will be signed by December and will be effective by February-March," Goyal said, as reported by news agency PTI. The minister also announced that US trade representative Jamieson Greer will visit India this week for discussions on the proposed India-US trade pact, adding, "The whole world is looking towards India."
Duty-Free Access for Most Indian Exports
The proposed India-EU FTA is expected to provide duty-free access to approximately 93% of Indian exports to the 27-member European bloc. In return, imports of products such as luxury cars and wines from Europe are anticipated to become cheaper in India. India and the EU together account for around 25% of global GDP and nearly one-third of global trade, making this one of the most significant trade deals negotiated by New Delhi. The two sides announced the conclusion of negotiations on January 27, 2025, with officials describing it as the "mother of all deals."
Momentum Builds After G7 Discussions
The timeline outlined by Goyal follows Prime Minister Narendra Modi's meeting with European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the G7 Summit. Von der Leyen had previously stated that the India-EU FTA would be signed by the end of 2026. "Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year," she said. The leaders also discussed accelerating work on an investment agreement, strengthening security and defence cooperation, and advancing the India-Middle East-Europe Economic Corridor (IMEC).
Goyal also noted that during the G7 Summit, the Canadian Prime Minister expressed a desire to conclude the proposed India-Canada Comprehensive Economic Partnership Agreement (CEPA) within this year. India and Canada held the second round of negotiations for the trade pact in May 2025.
