India-EU free trade pact set to double trade in five years

Projected trade surge: EU envoy Hervé Delphin expects trade volumes to double within five years, spurring exports, investment, and production localisation.

Finalisation process: The deal is undergoing legal vetting, with signing targeted by year-end pending European Parliament consent.

India and EU conclude landmark FTA negotiations

The European Union and India have completed negotiations on a major free trade agreement after years of work, according to EU Ambassador Hervé Delphin. He called it the biggest trade deal for both sides, citing its extensive tariff reductions and its coverage of roughly one-quarter of global GDP and population. The agreement emerged from a period of strategic recalibration in Europe following events such as Brexit, the COVID-19 pandemic, and the war in Ukraine, aligning with India's own economic priorities.

A trade pact covering a quarter of the global economy

The FTA will remove or cut tariffs on the vast majority of EU goods exports to India, with the European Commission estimating annual duty savings of about €4 billion for EU exporters. Delphin said the deal could double bilateral trade within five years, with historical FTA trends showing significant post-signing growth in imports and exports. The pact is also expected to attract investment and encourage localisation of production in both regions.1