India-EU FTA nears target: 96% tariff cut, €4bn savings and more: Here’s a look at what the deal offers | Today’s news

India and the European Union moved closer to finalizing a landmark free trade agreement (FTA) on Friday, with the European Commission seeking approval for its signature and conclusion. If approved by the Council, it will be the largest trade agreement ever concluded between the EU and India.

The EU and India already trade goods and services worth more than €180 billion a year, supporting almost 800,000 jobs in the EU. Once adopted and in force, the FTA will improve market access, reduce tariffs, remove unnecessary barriers to trade and provide predictable rules for trade and investment between the two countries.

The EU and India started negotiations for a free trade agreement in 2007. Negotiations were suspended in 2013, resumed in 2022 and successfully concluded in January 2026. In addition to the free trade agreement, the EU and India are also negotiating agreements on geographical indications and investment protection. The free trade agreement is expected to enter into force later this year or in the first half of 2027.

Here are the main benefits of the India-EU FTA:

• The deal will eliminate or reduce tariffs on 96% of EU goods exports to India.
• Overall, the tariff cuts will save around €4 billion a year in tariffs on European products.
• Lower tariffs and reductions in trade barriers could provide consumers in both markets with greater choice and access to products at more competitive prices.
• It will remove unnecessary barriers to trade and establish more predictable rules for trade and investment, helping companies plan and expand in both markets.

“A bold leap for two economic powerhouses”

The European ambassador-designate to India and Bhutan, Jean-Eric Paquet, said on Friday that the proposal was a “bold leap for the two economic powers”, hailing the landmark free trade agreement between India and the EU as moving “one step closer to the finish line”.

The ambassador-designate’s comments come shortly after the European Commission submitted the deal to the EU Council for approval, as he said the deal cleared the way for early approval.

“Fantastic news! The FTA has just moved one step closer to the finish line! The @EU_Commission has sent its proposal to the @EUCouncil, clearing the way for an early approval; while the full text is now public,” Ambassador candidate Paquet wrote on X.

In his post, he shared the text of the proposed text, adding that the proposal “isn’t just another deal. It’s a bold leap for two economic powers!”

India is the EU’s ninth largest trading partner in goods, with bilateral trade in goods reaching €118 billion in 2025. The bulk of EU exports to India are machinery, transport equipment and chemicals, while India’s shipments to Europe consist mainly of machinery, chemicals, textiles, metals and refined petroleum products.

Trade in services between the two economies will reach €67 billion in 2025, with EU services imports at €37.8 billion and exports at €29.2 billion.