India-EU Free Trade Agreement: India and the European Union (EU) on Monday announced the conclusion of a Free Trade Agreement (FTA) at the 16th India-EU Summit.
The agreement was finalized during a visit of EU leaders led by European Commission President Ursula von der Leyen to India.
“The conclusion of this FTA positions India and the European Union as trusted partners committed to open markets, predictability and inclusive growth,” an official statement said.
Can the agreement support small businesses and secure intellectual property rights?
Small businesses: The agreement contains a special section aimed at helping smaller companies. They will get simplified access to comprehensive data on running and setting up businesses within the EU and India. Liaison offices for small and medium-sized enterprises will work together to simplify business exchanges for smaller entities. Reduced tariffs, removal of technical barriers, greater clarity and consistent regulatory frameworks will enable organizations to trade internationally in a more affordable, straightforward and efficient manner.
Intellectual property rights: The FTA reinforces the intellectual property safeguards established under TRIPS in terms of authorship, trademarks, industrial designs, proprietary secrets and botanical types. It supports the Doha Declaration and recognizes the value of electronic archives, particularly the Traditional Indian Knowledge Digital Library (TKDL) initiative. The pact provides robust oversight and implementation of intellectual property standards that include creative works, trademarks and confidential data. In addition, it mandates specific protocols and legal avenues to guarantee strict protection of this intellectual property.
Bureaucracy: Both the EU and India have committed to streamlining work procedures that will ensure a clear and stable legislative environment along with faster clearance of shipments at borders. Together, these improvements will make global trade logistics faster and more cost-effective. India and the EU also agreed to strengthen their partnership in logistics security and improve risk assessment and surveillance mechanisms at the European Union’s external borders.
The India-EU FTA will reduce tariffs and administrative burdens, making trade more accessible, affordable and faster.
Piyush Goyal, Union Minister of Commerce and Industry, said in a statement: “The conclusion of the India-EU Free Trade Agreement represents a defining achievement in India’s economic engagement and global outlook. This supports India’s approach to ensuring trusted, mutually beneficial and balanced partnerships.”
The European Union remains a leading trading ally for India, with the two-way exchange of commodities and professional services steadily expanding in recent times.
During 2024-25, India’s two-way commodity trade with the EU has reached ₹11.5 million crowns ($136.54 billion), including exports worth ₹6.4 million crores ($75.85 billion) and total arrivals ₹5.1 million crowns ($60.68 billion). India-EU trade hit based on services ₹7.2 lakh crore ($83.10 billion) in 2024. India and the EU are the 4th and 2nd largest global economies, accounting for 25% of world GDP and one-third of international trade.
