India and EU near conclusion of historic Free Trade Agreement
After nearly two decades of negotiations, India and the European Union are poised to finalize a comprehensive Free Trade Agreement that could reshape global trade ties, significantly boost bilateral commerce, and strengthen strategic economic cooperation.
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India and the European Union are on the brink of finalizing a landmark Free Trade Agreement (FTA) at a summit in New Delhi scheduled for January 27, 2026. The negotiations, which began nearly 18 years ago, have finally reached a critical juncture after both sides resolved major sticking points including tariff cuts on automobiles and industrial products.
This pact is expected to eliminate or significantly reduce tariffs on a wide range of products including Indian textiles, chemicals, and European cars and wines, thereby opening markets on both sides. India’s Commerce Minister and EU leaders, including the European Commission President, have described the deal as one of the most ambitious trade agreements for both economies.
Strategically, the FTA comes at a time when global supply chains are being realigned due to broader trade disruptions and tariff pressures, particularly from the United States and China. Experts believe that this agreement will deepen India’s integration into global markets and could be a catalyst for increased investment, job creation, and export opportunities.
