India and the European Union have concluded negotiations on a long awaited free trade agreement, with the formal announcement expected on Tuesday, India’s trade secretary confirmed on Monday. Both sides described the agreement as historic, coming at a time when trade ties with the United States remain under strain.
The deal will enable freer movement of goods between India and the 27 member European Union, together representing nearly a quarter of global GDP and a combined consumer market of around two billion people. India’s Trade Secretary Rajesh Agrawal said the agreement is balanced and forward looking, and will strengthen economic integration while boosting trade and investment flows on both sides.
Bilateral trade between India and the EU reached 136.5 billion dollars in the financial year ending March 2025. According to an Indian government official familiar with the process, the agreement will now undergo legal vetting, which is expected to take five to six months, before formal signing. The deal is likely to come into force within a year.
The agreement follows a series of recent trade pacts signed by the EU, including a major deal with the South American bloc Mercosur, as well as earlier agreements with Indonesia, Mexico, and Switzerland. During the same period, India has finalised trade deals with the United Kingdom, New Zealand, and Oman.
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