India and the European Union on Tuesday announced the conclusion of the long-awaited India–EU Free Trade Agreement (FTA), marking a major milestone in bilateral economic relations. The agreement was jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen at the 16th India–EU Summit.

The FTA, concluded after negotiations were relaunched in 2022, aims to strengthen trade, investment and strategic cooperation between the two sides, positioning India and the EU as trusted partners committed to open markets and inclusive growth.

The EU is one of India’s largest trading partners, with bilateral goods trade standing at Rs 11.5 lakh crore (USD 136.5 billion) in 2024–25, while services trade reached Rs 7.2 lakh crore (USD 83.1 billion). The agreement is expected to significantly boost India’s exports by providing duty-free market access for over 99% of Indian exports by value.

The pact covers trade in goods and services, mobility of professionals, digital trade, SMEs, and emerging technologies, while offering major benefits to labour-intensive sectors such as textiles, apparel, leather, gems and jewellery, engineering goods and automobiles. It also enhances access for Indian services, including IT, professional services and education, while supporting India’s manufacturing and ‘Make in India’ initiatives.

Commerce and Industry Minister Piyush Goyal termed the agreement a defining achievement in India’s global trade engagement, saying it would create jobs, enhance competitiveness and integrate India more deeply into global value chains.

The India–EU FTA makes the EU India’s 22nd FTA partner and, along with recent deals with the UK and EFTA, opens up the broader European market for Indian businesses.