India and EU announce conclusion of Free Trade Agreement at 16th India–EU Summit
PM Narendra Modi and European Commission President Ursula von der Leyen announced the conclusion of the India–EU FTA at the 16th India–EU Summit in New Delhi on 27 January 2026; over 99% of Indian exports by value get preferential entry into the EU.
Summary
The India–EU Free Trade Agreement was announced as concluded at the 16th India–EU Summit on 27 January 2026, after negotiations relaunched in 2022. The Commerce Ministry said more than 99% of Indian exports by trade value gain preferential access to the EU. Tariffs of up to 10% on about USD 33 billion of labour-intensive exports such as textiles, leather, marine products and gems and jewellery fall to zero on entry into force. Sensitive agricultural products and the dairy sector get no market access. Auto liberalisation is quota-based, and the deal has forward-looking provisions on the EU's Carbon Border Adjustment Mechanism (CBAM), including a most-favoured-nation assurance. In 2024-25, India–EU goods trade was USD 136.54 billion (exports USD 75.85 billion, imports USD 60.68 billion).
Key facts
- Announced
- 27 January 2026, 16th India–EU Summit, New Delhi
- Leaders
- PM Narendra Modi and EC President Ursula von der Leyen
- Negotiations relaunched
- 2022
- Market access
- Over 99% of Indian exports by trade value
- Labour-intensive gain
- Tariffs up to 10% on ~USD 33 bn exports cut to zero
- Excluded
- Dairy and sensitive agricultural products
- Goods trade 2024-25
- USD 136.54 bn (exports 75.85, imports 60.68)
- Combined weight
- India 4th and EU 2nd largest economy; ~25% of global GDP
Practice MCQs 3 questions
The conclusion of the India–EU Free Trade Agreement was announced on 27 January 2026 at which India–EU Summit?
Show answer
Correct answer: C — 16th
PIB (Commerce): announced at the 16th India–EU Summit.
Consider the following statements about the India–EU FTA concluded in January 2026: 1. Over 99% of Indian exports by trade value gain preferential access to the EU. 2. India has given the EU market access in the dairy sector. 3. Negotiations had been relaunched in 2022. Which of the statements given above are correct?
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Correct answer: B — 1 and 3 only
PIB (Commerce): 99%+ exports get preferential entry; negotiations relaunched in 2022; sensitive agriculture and dairy get no market access, so statement 2 is wrong.
According to the Commerce Ministry, India's bilateral trade in goods with the EU in 2024-25 was about:
Show answer
Correct answer: C — USD 136.54 billion
PIB (Commerce): goods trade USD 136.54 billion in 2024-25 (exports USD 75.85 bn, imports USD 60.68 bn).