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The India–European Union free trade agreement will cover almost the entire spectrum of bilateral commerce, with duty concessions extending to nearly all traded goods and services, Commerce and Industry Minister Piyush Goyal said on Tuesday, hours after New Delhi and Brussels concluded negotiations on what has been described as the “mother of all deals” for the subcontinent.
He made the remarks at a joint press conference by the Ministry of Commerce and the Ministry of External Affairs on the India-EU FTA conclusion on Tuesday evening.
The agreement will cover close to 99% of Indian exports to the EU and about 97% of European exports to India, marking one of the most comprehensive trade pacts either side has signed and ending nearly two decades of stop-start talks between the two economies.
Goyal said the agreement marks India’s eighth free trade pact under Prime Minister Narendra Modi, all of which have been concluded with developed economies.
Taken together, these agreements amount to trade arrangements with 37 advanced nations, reflecting a strategic pivot in India’s external commercial engagement.
Also read: India-EU FTA is a new blueprint for common prosperity, says PM Modi on 'mother of all deals'
“Leaving the sensitive issues aside and coming up with a balance, equitable FTA which is a win-win for all sections of industry—on both sides,” Goyal said.
The scale of the opportunity, he said, lies in the size of the European market. The EU currently imports goods worth about $6.5 trillion and services worth nearly $3 trillion annually, making it one of the largest and most diversified consumption markets globally.
Under the agreement, India will open up selected segments, including greater market access for automobile components as well as wines and spirits. At the same time, negotiators have ensured that vulnerable sectors are either excluded or provided long transition periods to adjust to increased competition.
“Both sides have ensured that sensitive items are kept out or given enough time for adjustment,” Goyal said.
The commerce minister described the pact as extending beyond tariff liberalisation. “This visit is extraordinary, goes far beyond an FTA,” he said, pointing to broader cooperation across multiple areas. “India, EU have come together in a multitude of areas to strengthen our partnerships and work together for a better future for one-third of humanity.”
Also read: Mother-of-all deals, but these three things were off the table in the India–EU trade pact
Moreover, he said the agreement is expected to have a significant employment impact, particularly in labour-intensive sectors such as textiles. The textile industry, he noted, is India’s second-largest job creator after agriculture.
India currently exports about $7 billion worth of textiles to the European Union every year, and improved market access under the agreement could sharply expand that figure, Goyal said. He added that the sector alone has the potential to support 6–7 million jobs.
“There will be a large number of jobs to be created both in India and the European Union,” Goyal said, linking the FTA’s tariff concessions and supply-chain integration to employment growth across both economies.
The formal signing of the India-EU free trade agreement will take place after legal scrubbing, Commerce Secretary Rajesh Agrawal had said Monday, following which the deal will move towards ratification on both sides.
India-EU deal: India clinks glasses as Trump paints US into a corner
The agreement grants India unprecedented access to the EU market, with over 99% of Indian exports by value set to receive preferential treatment. In return, India will liberalise about 97% of EU exports, with sensitive sectors either excluded or provided extended transition periods. The EU is India’s largest trading partner, with bilateral trade in goods and services exceeding $219 billion in 2024–25.
A central feature of the pact is the elimination of tariffs—up to 10%—on nearly $33 billion worth of Indian exports at entry into force, delivering an immediate boost to labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, engineering goods and automobiles. Carefully calibrated, quota-based liberalisation in automobiles allows EU manufacturers limited access to India’s market while preserving scope for domestic manufacturing and future exports from India.
The good, the bad and the ugly: India-EU ‘mother of all deals’ explained for stock market investors
The agreement significantly expands services trade, securing predictable and non-discriminatory access for Indian firms across 144 EU service subsectors, including IT and IT-enabled services, professional services, education, finance and tourism. A structured mobility framework enables short-term business travel, intra-corporate transfers, contractual service suppliers and independent professionals, with provisions extending to dependents. The pact also lays the groundwork for future social security arrangements and student mobility.
Beyond tariffs, the FTA addresses non-tariff barriers through streamlined customs procedures, stronger regulatory cooperation, and clearer sanitary, phytosanitary and technical standards. It includes commitments on digital trade, SMEs, intellectual property protection, and cooperation in emerging areas such as clean technologies, semiconductors and artificial intelligence.
He made the remarks at a joint press conference by the Ministry of Commerce and the Ministry of External Affairs on the India-EU FTA conclusion on Tuesday evening.
The agreement will cover close to 99% of Indian exports to the EU and about 97% of European exports to India, marking one of the most comprehensive trade pacts either side has signed and ending nearly two decades of stop-start talks between the two economies.
Goyal said the agreement marks India’s eighth free trade pact under Prime Minister Narendra Modi, all of which have been concluded with developed economies.
Taken together, these agreements amount to trade arrangements with 37 advanced nations, reflecting a strategic pivot in India’s external commercial engagement.
Also read: India-EU FTA is a new blueprint for common prosperity, says PM Modi on 'mother of all deals'
India-EU FTA a 'breakthrough' after 20 years
“This breakthrough between India and EU comes after 20 years,” Goyal said, adding that the most intensive phase of negotiations began in 2024. According to the minister, both sides chose to defer or ring-fence politically and economically sensitive issues to arrive at what he described as a balanced outcome.“Leaving the sensitive issues aside and coming up with a balance, equitable FTA which is a win-win for all sections of industry—on both sides,” Goyal said.
The scale of the opportunity, he said, lies in the size of the European market. The EU currently imports goods worth about $6.5 trillion and services worth nearly $3 trillion annually, making it one of the largest and most diversified consumption markets globally.
Under the agreement, India will open up selected segments, including greater market access for automobile components as well as wines and spirits. At the same time, negotiators have ensured that vulnerable sectors are either excluded or provided long transition periods to adjust to increased competition.
“Both sides have ensured that sensitive items are kept out or given enough time for adjustment,” Goyal said.
The commerce minister described the pact as extending beyond tariff liberalisation. “This visit is extraordinary, goes far beyond an FTA,” he said, pointing to broader cooperation across multiple areas. “India, EU have come together in a multitude of areas to strengthen our partnerships and work together for a better future for one-third of humanity.”
Also read: Mother-of-all deals, but these three things were off the table in the India–EU trade pact
India's $7 billion exports opportunity set to expand
Goyal said the agreement represents a milestone for India’s trade diplomacy and competitiveness. “I congratulate 1.4 billion Indians today,” he said.Moreover, he said the agreement is expected to have a significant employment impact, particularly in labour-intensive sectors such as textiles. The textile industry, he noted, is India’s second-largest job creator after agriculture.
India currently exports about $7 billion worth of textiles to the European Union every year, and improved market access under the agreement could sharply expand that figure, Goyal said. He added that the sector alone has the potential to support 6–7 million jobs.
“There will be a large number of jobs to be created both in India and the European Union,” Goyal said, linking the FTA’s tariff concessions and supply-chain integration to employment growth across both economies.
The formal signing of the India-EU free trade agreement will take place after legal scrubbing, Commerce Secretary Rajesh Agrawal had said Monday, following which the deal will move towards ratification on both sides.
India-EU deal: India clinks glasses as Trump paints US into a corner
'VonDerful' Deal! India makes history, clinches EU FTA
India and the European Union have concluded a comprehensive free trade agreement at the 16th India–EU Summit, marking the most significant expansion of bilateral economic ties between the two sides in nearly two decades. Relaunched in 2022, negotiations culminated in a pact that places India and the EU among a small group of trusted trade partners committed to rules-based commerce, predictable market access and long-term integration.The agreement grants India unprecedented access to the EU market, with over 99% of Indian exports by value set to receive preferential treatment. In return, India will liberalise about 97% of EU exports, with sensitive sectors either excluded or provided extended transition periods. The EU is India’s largest trading partner, with bilateral trade in goods and services exceeding $219 billion in 2024–25.
A central feature of the pact is the elimination of tariffs—up to 10%—on nearly $33 billion worth of Indian exports at entry into force, delivering an immediate boost to labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, engineering goods and automobiles. Carefully calibrated, quota-based liberalisation in automobiles allows EU manufacturers limited access to India’s market while preserving scope for domestic manufacturing and future exports from India.
The good, the bad and the ugly: India-EU ‘mother of all deals’ explained for stock market investors
The agreement significantly expands services trade, securing predictable and non-discriminatory access for Indian firms across 144 EU service subsectors, including IT and IT-enabled services, professional services, education, finance and tourism. A structured mobility framework enables short-term business travel, intra-corporate transfers, contractual service suppliers and independent professionals, with provisions extending to dependents. The pact also lays the groundwork for future social security arrangements and student mobility.
Beyond tariffs, the FTA addresses non-tariff barriers through streamlined customs procedures, stronger regulatory cooperation, and clearer sanitary, phytosanitary and technical standards. It includes commitments on digital trade, SMEs, intellectual property protection, and cooperation in emerging areas such as clean technologies, semiconductors and artificial intelligence.
