The European Commission on September 11 formally put forward proposals to the Council of the European Union for the signature and conclusion of the EU-India Free Trade Agreement (FTA), taking the landmark pact to the next stage after negotiations were concluded on January 27, 2026. If approved by the Council and subsequently consented to by the European Parliament, the agreement would be the largest trade deal concluded by the EU and India.
The proposed FTA is aimed at reducing tariffs, removing unnecessary trade barriers and creating more predictable conditions for trade and investment. The EU and India currently trade more than €180 billion in goods and services annually, supporting nearly 800,000 EU jobs. The European Commission said the agreement would eliminate or reduce tariffs on 96% of EU goods exports to India, with annual duty savings for European exporters estimated at around €4 billion.
The Commission is now seeking Council authorisation to sign the agreement. The pact would then require European Parliament approval before conclusion and entry into force. Indian authorities are simultaneously undertaking their domestic ratification procedures.
Agriculture: Wider Market Access, but Sensitive Sectors Protected
Agriculture is a significant component of the agreement, with the EU seeking substantially improved access for its agri-food exports to India while both sides retain protection for sensitive farm sectors.
EU agri-food exports to India were worth €1.3 billion in 2024, accounting for only 0.6% of the bloc’s total agri-food exports. The Commission said Indian tariffs on agri-food products average 36% and can reach 150% for some products. Under the agreement, tariffs on several EU products would be sharply reduced or eliminated.
Tariffs on olive oil, margarine and other vegetable oils, for example, would fall from up to 45% to zero, while tariffs on processed foods such as bread, biscuits, pasta, chocolate and pet food, currently as high as 50%, would also be eliminated. Wine tariffs would fall from 150% to 20% for premium products and 30% for medium-range products, while spirits would face a 40% tariff.
However, the EU said sensitive products including beef, sugar, rice, chicken, milk powder, honey, bananas, soft wheat, garlic and ethanol would retain existing EU tariff protection. India has also safeguarded sensitive sectors including dairy, cereals, poultry, soymeal and certain fruits and vegetables.
From India’s perspective, the FTA is expected to provide preferential access across 97% of tariff lines covering 99.5% of its exports by trade value. Major labour-intensive sectors, including textiles, leather, footwear, marine products, chemicals, plastics, sports goods, toys and gems and jewellery, are expected to gain from tariff liberalisation.
India’s agricultural exports such as tea, coffee, spices, grapes, gherkins, cucumbers, dried onion, fresh fruits and vegetables and processed foods are also expected to gain improved access to the European market. India has retained safeguards for sensitive farm products while seeking to increase the value and competitiveness of its agricultural exports.
The EU-India FTA negotiations began in 2007 but were suspended in 2013 before being relaunched in 2022. The 14th and final formal negotiating round was held in October 2025, followed by technical and political discussions leading to the conclusion announced in January 2026.
The two sides are also negotiating separate agreements on Geographical Indications and Investment Protection. These negotiations remain ongoing.