India–EU FTA Likely Today; Here’s What to Expect from the ‘Mother of All Deals’

The much-anticipated Free Trade Agreement between India and the European Union is expected to be announced later in the day. The conclusion of the long-awaited deal is expected to open greater market access for Indian exports, strengthen bilateral trade between Brussels and New Delhi, and provide relief to exporters hit by US reciprocal tariffs.

“Negotiations have been successfully concluded. The deal has been finalised,” Commerce Secretary Rajesh Agarwal said on Monday. Agarwal added that the agreement is expected to be signed later this year and would come into force by early next year. Implementation of the trade deal requires approval from the Union Cabinet in India, while the agreement would need ratification by the European Parliament as well.

A key outcome of the India–EU summit is the signing of the Security and Defence Partnership by EU High Representative for Foreign Affairs and Security Policy Kaja Kallas and Union Defence Minister Rajnath Singh. India and the EU will also adopt a new Joint Strategic Agenda to accelerate the bilateral partnership beyond the existing framework.

“The display of the flags of the EU, the EU Military Staff, and our maritime missions — ATALANTA and ASPIDES — at India’s Republic Day is a powerful symbol of our deepening security cooperation. It will culminate tomorrow in the signature of our Security and Defence Partnership,” European Commission President Ursula von der Leyen wrote on X.

Von der Leyen and European Council President Antonio Costa are on a two-day official visit to New Delhi from January 25–27. Costa and von der Leyen were the chief guests at the Republic Day celebrations.

Earlier this month, Union Minister of Commerce and Industry Piyush Goyal described the India–EU trade deal as the “mother of all deals.” Speaking at the annual World Economic Forum summit, von der Leyen reiterated the significance of the agreement and said India and the EU were at the cusp of a historic agreement.

The India–EU trade deal negotiations date back to 2007 and were discontinued in 2013. It was then called the Broad-based Bilateral Trade and Investment Agreement (BTIA). The negotiations were relaunched in 2022 amid renewed political and economic interest.

The agreement is expected to provide duty-free or preferential access for a wide range of Indian exports, particularly from labour-intensive sectors including textiles, chemicals, gems and jewellery, electrical machinery, leather, and footwear — which form the backbone of Indian exports.

Bilateral trade between New Delhi and Brussels totalled $140 billion in FY2025, with exports worth $75.85 billion and imports at $60.68 billion, making the bloc India’s largest trading partner.