India-EU FTA
Key Provisions and Tariff Architecture
The India-EU FTA (formally concluded January 27, 2026) is a Comprehensive Trade and Investment Agreement covering trade in goods, services, investment, intellectual property, sustainable development, and regulatory cooperation. It is among the largest bilateral trade agreements in history by combined GDP of the parties.
- For Indian exports: 70.4% of tariff lines (90.7% of trade value) get immediate duty elimination; remaining lines phased over 5-7 years.
- Sectors with immediate zero duty for Indian exports: textiles, apparel, leather, footwear, tea, coffee, spices, marine products, gems and jewellery, sports goods, toys, chemicals, plastics.
- For EU exports to India: 49.6% of tariff lines get immediate zero duty; 39.5% phased over 5, 7, and 10 years; some sensitive categories retained protection.
- Indian automotive tariff reduction: from 110% to 10% (gradual), with car parts duties eliminated within 5-10 years.
- The EU Commission estimates the deal will save EU exporters up to €4 billion annually in tariff duties and will double EU exports to India by 2032.
- Combined GDP of India and EU: nearly 25% of global GDP, making this among the world's largest trading relationships.
- Before entering into force: requires approval by the Council of the European Union, consent of the European Parliament, and approval by India's Union Cabinet/Parliament.
● Tracked since February 04, 2026 · last seen July 02, 2026 · updates as the daily brief publishes
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