India EU Trade Deal News Live: India-EU FTA win-win deal, will create millions of jobs, says EU Chie

The India-European Union (EU) free trade agreement (FTA) will see India cut steep tariffs on a range of European agri-food products, including wines, olive oil and processed foods, while keeping politically sensitive farm sectors outside the scope of liberalisation. According to an official EU factsheet, the deal targets agri-food duties that currently average over 36%, signalling a calibrated opening of the Indian market even as key staples such as rice, sugar and meat remain protected.

President of the European Council, António Luís Santos da Costa, said on Friday that the European Union could “count on” Prime Minister Narendra Modi to help create the conditions for peace, underlining India’s growing diplomatic weight at a time of global conflict. Speaking at the EU-India summit, Costa recalled Mahatma Gandhi’s message on peace, saying, “Peace will not come out of a clash of arms but out of justice lived and done by unarmed nations in the face of odds.” He said the words remain deeply relevant as the world searches for an end to ongoing wars.

Strengthen connectivity between Europe, India, and the wider world, upholding high standards while unlocking new commercial opportunities for Indian and EU businesses. Further implement the 2021 EU–India Connectivity Partnership including through Global Gateway and India’s MAHASAGAR, focusing on energy connectivity, transport and digital.

Deepen strategic collaboration under the India-Middle East-Europe Economic Corridor (IMEC) to diversify trade routes, reduce strategic dependencies, promote regional integration, and future-proof supply chains, including support to infrastructure development, maritime, rail, digital, and energy.

Advance the EU-Africa-India Digital Corridor within the framework of IMEC including through the Blue Raman submarine cable system to provide ultra-high-speed, secure, and diversified data connectivity resilient to disruptions caused by natural disasters or acts of sabotage.

Develop Green Shipping Corridors to strengthen sustainable maritime connectivity, reduce dependency on carbon-intensive shipping fuels and work together to achieve consensus based global low carbon maritime transport standards as well as work towards sustainable maritime transport solutions and joint development of green shipping shipbuilding ecosystem in India.

Establish a regular Dialogue on Aviation to explore ways to deepen market cooperation, expand direct connectivity, and strengthen sustainability cooperation in green aviation, and with a view to a possible Comprehensive Air Transport Agreement. The Dialogue will also include cooperation on aviation safety with a view to a possible Bilateral Aviation Safety Agreement.

Best Education Loan Options for J&K Students 

Implement the India-EU Security and Defence Partnership (SDP) to strengthen dialogue and cooperation in security and defence, including maritime security, defence industry and technology, cyber and hybrid threats, space and counterterrorism.

Enhance the existing Security and Defence Consultations to an annual EU-India Security and Defence Dialogue through the SDP.

Conclude an India-EU Security of Information Agreement to facilitate exchanges of classified information and stronger security and defence cooperation.

Consult on respective defence initiatives, including through exchanges on defence industry- related matters. Explore, where there are mutual interest and alignment of security priorities, possibilities for India’s participation in relevant EU defence initiatives, as appropriate, in line with respective legal frameworks.

Set up an industry-led India – EU Defence Industry Forum to bring together businesses from both sides, with official participation as observers and associating EU Member States, for further focused discussions on defence industry to explore opportunities.

Cooperation under the India-EU Clean Energy and Climate Partnership will be strengthened, covering energy technologies, smart grids, storage, electricity regulation, and climate diplomacy.

The Joint Working Group on Energy Security under the India-EU Energy Panel will be reactivated, focusing on diversifying reliable and affordable energy sources and improving energy efficiency across sectors.

An India-EU Wind Business Summit will be organised to promote exchanges on wind energy technologies, auction design, investment, financing, research, and innovation.

The India-EU Task Force on Green Hydrogen will be operationalised to advance cooperation in hydrogen production, storage, and distribution, particularly for decarbonising hard-to-abate sectors.

Further collaboration will be explored in sustainable mobility, including sustainable aviation fuels, compressed biogas, electric mobility, vehicle energy certification, and charging standards.

Cooperation in the railway sector will focus on advanced standards for high-speed rail, decarbonisation, digitalisation, and automation of operations and maintenance.

India and the EU will support sustainable ship recycling through implementation of the Hong Kong Convention and inclusion of compliant Indian ship-recycling yards in the EU’s approved facilities list.

Urban cooperation will be deepened under the India-EU Partnership on Smart and Sustainable Urbanisation through city-to-city exchanges and investments.

Collaboration will advance on sustainable finance instruments and corporate sustainability, including under the EU’s Global Green Bonds Initiative.

Both sides will work to strengthen power markets through tools such as contracts for difference, smart meter insights, and offtake agreements, while sharing expertise on electrolysers, fuel cells, and energy storage.

They will cooperate on industrial decarbonisation of energy-intensive sectors such as steel and cement, including exchanges on low-carbon material definitions while ensuring a level playing field.

India and the EU will share experiences on carbon markets, including India’s Carbon Credit Trading Scheme and the EU’s Emissions Trading System, and explore further cooperation.

Climate adaptation and resilience cooperation will be deepened, including disaster preparedness, early-warning systems, and infrastructure resilience through platforms such as the Coalition for Disaster Resilient Infrastructure.

Water resilience and security collaboration will be strengthened under the India-EU Water Partnership through regular Joint Working Group meetings.

The Resource Efficiency and Circular Economy Partnership will be reinforced, including the establishment of a Joint Working Group on Circular Economy.

Environmental cooperation will be enhanced through continued dialogue and exploration of resuming the India-EU Environmental Forum.

Cooperation under the India-EU Clean Energy and Climate Partnership will be strengthened, covering energy technologies, smart grids, storage, electricity regulation, and climate diplomacy.

The Joint Working Group on Energy Security under the India-EU Energy Panel will be reactivated, focusing on diversifying reliable and affordable energy sources and improving energy efficiency across sectors.

An India-EU Wind Business Summit will be organised to promote exchanges on wind energy technologies, auction design, investment, financing, research, and innovation.

The India-EU Task Force on Green Hydrogen will be operationalised to advance cooperation in hydrogen production, storage, and distribution, particularly for decarbonising hard-to-abate sectors.

Further collaboration will be explored in sustainable mobility, including sustainable aviation fuels, compressed biogas, electric mobility, vehicle energy certification, and charging standards.

Cooperation in the railway sector will focus on advanced standards for high-speed rail, decarbonisation, digitalisation, and automation of operations and maintenance.

India and the EU will support sustainable ship recycling through implementation of the Hong Kong Convention and inclusion of compliant Indian ship-recycling yards in the EU’s approved facilities list.

Urban cooperation will be deepened under the India-EU Partnership on Smart and Sustainable Urbanisation through city-to-city exchanges and investments.

Collaboration will advance on sustainable finance instruments and corporate sustainability, including under the EU’s Global Green Bonds Initiative.

Both sides will work to strengthen power markets through tools such as contracts for difference, smart meter insights, and offtake agreements, while sharing expertise on electrolysers, fuel cells, and energy storage.

They will cooperate on industrial decarbonisation of energy-intensive sectors such as steel and cement, including exchanges on low-carbon material definitions while ensuring a level playing field.

India and the EU will share experiences on carbon markets, including India’s Carbon Credit Trading Scheme and the EU’s Emissions Trading System, and explore further cooperation.

Climate adaptation and resilience cooperation will be deepened, including disaster preparedness, early-warning systems, and infrastructure resilience through platforms such as the Coalition for Disaster Resilient Infrastructure.

Water resilience and security collaboration will be strengthened under the India-EU Water Partnership through regular Joint Working Group meetings.

The Resource Efficiency and Circular Economy Partnership will be reinforced, including the establishment of a Joint Working Group on Circular Economy.

Environmental cooperation will be enhanced through continued dialogue and exploration of resuming the India-EU Environmental Forum.

Cooperation under the India-EU Clean Energy and Climate Partnership will be strengthened, covering energy technologies, smart grids, storage, electricity regulation, and climate diplomacy.

The Joint Working Group on Energy Security under the India-EU Energy Panel will be reactivated, focusing on diversifying reliable and affordable energy sources and improving energy efficiency across sectors.

An India-EU Wind Business Summit will be organised to promote exchanges on wind energy technologies, auction design, investment, financing, research, and innovation.

The India-EU Task Force on Green Hydrogen will be operationalised to advance cooperation in hydrogen production, storage, and distribution, particularly for decarbonising hard-to-abate sectors.

Further collaboration will be explored in sustainable mobility, including sustainable aviation fuels, compressed biogas, electric mobility, vehicle energy certification, and charging standards.

Cooperation in the railway sector will focus on advanced standards for high-speed rail, decarbonisation, digitalisation, and automation of operations and maintenance.

India and the EU will support sustainable ship recycling through implementation of the Hong Kong Convention and inclusion of compliant Indian ship-recycling yards in the EU’s approved facilities list.

Urban cooperation will be deepened under the India-EU Partnership on Smart and Sustainable Urbanisation through city-to-city exchanges and investments.

Collaboration will advance on sustainable finance instruments and corporate sustainability, including under the EU’s Global Green Bonds Initiative.

Both sides will work to strengthen power markets through tools such as contracts for difference, smart meter insights, and offtake agreements, while sharing expertise on electrolysers, fuel cells, and energy storage.

They will cooperate on industrial decarbonisation of energy-intensive sectors such as steel and cement, including exchanges on low-carbon material definitions while ensuring a level playing field.

India and the EU will share experiences on carbon markets, including India’s Carbon Credit Trading Scheme and the EU’s Emissions Trading System, and explore further cooperation.

Climate adaptation and resilience cooperation will be deepened, including disaster preparedness, early-warning systems, and infrastructure resilience through platforms such as the Coalition for Disaster Resilient Infrastructure.

Water resilience and security collaboration will be strengthened under the India-EU Water Partnership through regular Joint Working Group meetings.

The Resource Efficiency and Circular Economy Partnership will be reinforced, including the establishment of a Joint Working Group on Circular Economy.

Environmental cooperation will be enhanced through continued dialogue and exploration of resuming the India-EU Environmental Forum.

India and the EU will jointly assess external vulnerabilities and strategic trade opportunities, while expanding collaboration across critical value chains.

Discussions will be initiated on “Blue Valleys” for selected strategic value chains to accelerate private sector engagement through investment facilitation, standards alignment, and structured business collaboration.

Economic security discussions within the Trade and Technology Council will be broadened to include research security and the protection of sensitive technologies.

Both sides will implement the EU-India Semiconductor Memorandum of Understanding to strengthen supply chain resilience and promote cooperation in research, development, chip design, sustainable semiconductor technologies, and manufacturing.

Cooperation will be expanded to scale up climate action across relevant energy sectors, taking national circumstances into account.

India and the EU will deepen collaboration on early-warning systems for active pharmaceutical ingredients, contingency planning in agrifood supply chains, and the advancement of bio-manufacturing and biotechnology.

They will also cooperate to develop resilient, secure, and diversified critical minerals supply chains to support the energy transition and sustainable industrial ecosystems.

India and the European Union reaffirm that trade and economic ties remain the foundation of their bilateral partnership, with a shared commitment to strengthening trade linkages, expanding investment avenues, and enhancing global supply and value chains.

The India-EU Free Trade Agreement is hailed as a historic milestone in the strategic partnership, with both sides calling for its timely implementation to unlock opportunities for shared prosperity and economic resilience.

Both sides agreed to conclude an Investment Protection Agreement to ensure high and predictable standards of investor protection and promote investment in high-growth and future-oriented sectors.

They also committed to finalising an Agreement on Geographical Indications to protect iconic products and expand trade opportunities.

Following the conclusion of a Memorandum of Understanding between the European Securities and Markets Authority and the Reserve Bank of India, India and the EU will enhance regulatory cooperation in financial services, including the establishment of a structured Regulatory Dialogue.

Customs cooperation between India and the EU will be deepened, alongside efforts to strengthen the bilateral Macroeconomic Dialogue.

The EU will scale up Team Europe Global Gateway investments in and with India, with the European Investment Bank serving as a key partner.

India will gradually cut tariffs on cars from 110 percent to as low as 10 percent under its free trade agreement with the European Union and fully abolish duties on car parts within five to ten years, the European Commission said in a statement. The tariff cut on cars will come with a quota of 250,000 vehicles a year. India and the European Union announced on January 27 that they had concluded talks for a free trade agreement.

We delivered the mother of all deals: EU’s von der Leyen on FTA with India.

India-EU trade deal will create millions of jobs on both sides: von der Leyen.

When trade is weaponised, this deal is key.

When India succeeds, the world becomes more stable.

India and the European Union on Tuesday inked a security and defence partnership agreement, marking a major step forward in their strategic relationship. Calling it a historic moment, Prime Minister Narendra Modi said that just a day after EU leaders participated in India’s Republic Day celebrations for the first time, both sides were now adding a “decisive new chapter” to ties between two major democratic powers. Speaking during the joint statement at Hyderabad House, PM Modi underlined that the agreement reflects growing trust, shared values, and a common commitment to peace, stability, and cooperation in an increasingly uncertain global environment.

PM Modi calls EU Chief Ursula an inspiration the world.

Commerce Minister Piyush Goyal signs trade deal with his EU counterpart

The formal presser at Hyderabad House begins.

India may step into 2026 by clinching a key free trade deal with the EU in the first quarter of the year. This would be one of around 10 agreements it is currently finalising with key trading partners, including Oman, Peru, Chile, New Zealand and Israel. It is also preparing to launch FTA negotiations with Qatar, with the Terms of Reference still being finalised, while also exploring ways to expand its existing agreement with the UAE to deepen economic ties in the Gulf. This would build on the current year when New Delhi leaned heavily on agreements to navigate a volatile trade climate globally.

The India-E.U. trade deal is likely to be announced later today, with analysts hoping that the “mother of all deals” can bring some much needed optimism to the domestic equity market. The buzz has lead to a smart rally in shares of KPR Mill, Welspun Living, and Nitin Spinners, which are expected to benefit from the FTA. At the current juncture, India’s exports to the European Union make up 17 percent of its total exports. According to Emkay Global, the bilateral agreement could lift India’s exports to the E.U. by roughly $50 billion, as a result of medium-tech manufacturing.

On the EU side, the negotiated draft texts will be published shortly and undergo legal review and translation. The European Commission will then submit the agreement to the Council for signature and conclusion. After Council approval and consent from the European Parliament, and following ratification by India, the agreement can enter into force.

A dedicated trade and sustainable development chapter reinforces commitments on environmental protection, climate action, workers’ rights and women’s empowerment. Alongside the FTA, the EU and India plan to sign a memorandum of understanding to establish an EU-India platform for climate cooperation, expected to launch in the first half of 2026. Subject to EU budgetary rules, up to €500 million in EU support over the next two years is envisaged to help India cut greenhouse gas emissions and advance sustainable industrial transformation.

The agreement grants EU firms enhanced access to India’s services markets, including financial services and maritime transport. It includes India’s most ambitious commitments on financial services in any trade deal. The pact also strengthens protection and enforcement of intellectual property rights, covering copyright, trademarks, designs, trade secrets and plant variety rights, and brings EU and Indian IP frameworks closer together.

The deal removes or lowers steep tariffs-averaging over 36%-on EU agri-food exports. Indian duties on wine will fall from 150% to 75% at entry into force and eventually to as low as 20%, while tariffs on olive oil will be phased down from 45% to zero over five years. Duties of up to 50% on products such as bread and confectionery will also be eliminated. Sensitive EU agricultural sectors, including beef, poultry, rice and sugar, are excluded from liberalisation, and Indian imports will continue to meet strict EU health and food safety standards.

India will grant the EU tariff reductions that no other trading partner has received so far. Tariffs on cars will be reduced gradually from 110% to as low as 10%, while duties on car parts will be fully eliminated within five to ten years. High tariffs on machinery, chemicals and pharmaceuticals will also be largely removed. A dedicated chapter will help small and medium-sized enterprises benefit from the agreement through contact points, transparency measures and reduced regulatory barriers.

The agreement represents the most far-reaching trade opening India has ever offered to a partner. It gives EU companies a significant competitive edge by providing privileged access to the world’s most populous country, with 1.45 billion people and an annual GDP of €3.4 trillion.

The EU and India currently trade more than €180 billion worth of goods and services annually, supporting nearly 800,000 jobs in the EU. Under the agreement, EU goods exports to India are expected to double by 2032, with tariffs eliminated or reduced on 96.6% of EU goods exports to India. Overall, the tariff cuts are estimated to save around €4 billion a year in duties on European products.

European Commission President Ursula von der Leyen said the agreement marks a historic moment in ties between the two sides. “The EU and India make history today, deepening the partnership between the world’s biggest democracies. We have created a free trade zone of 2 billion people, with both sides set to gain economically. We have sent a signal to the world that rules-based cooperation still delivers great outcomes. And, best of all, this is only the start-we will build on this success and grow our relationship to be even stronger,” she said.

The European Union and India have concluded negotiations on a historic, ambitious and commercially significant free trade agreement, the largest such deal ever finalised by either side. The pact is expected to strengthen economic and political ties between the world’s second- and fourth-largest economies at a time of heightened geopolitical tensions and global economic uncertainty, underlining a shared commitment to economic openness and rules-based trade.

Best scholarships for J&K students after 12th

“Europe and India are making history today. We have concluded the mother of all deals. We have created a free trade zone of two billion people, with both sides set to benefit. This is only the beginning. We will grow our strategic relationship to be even stronger,” posts EU chief on X

Bilateral trade remains a cornerstone of the India-EU relationship, with total trade exceeding $190 billion in 2024-25. India exported $75.9 billion worth of goods and $30 billion in services to the European Union, while the EU’s exports to India stood at $60.7 billion in goods and $23 billion in services.

India and the European Union are widely expected to announce the conclusion of talks for a free trade agreement on January 27 that leaders on both sides have described as the “mother of all deals.” A wide-ranging free trade agreement could widen India’s trade surplus with the European Union by over $50 billion by FY31, potentially lifting the bloc’s share in India’s exports to 22–23 percent from 17.3 percent in FY25, Emkay Global said in a research note on January 25.

PM Modi meets Ursula von der Leyen and António Luís Santos da Costa at Hyderabad House in New Delhi

European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen laid a wreath and paid floral tributes at Rajghat in New Delhi to honour Mahatma Gandhi.

The relevant question should not be whether India has an economy-wide carbon price matching the EU’s €85 per tonne, but whether India’s policy mix delivers comparable emissions trajectories adjusted for development stage and capacity (Read More)

The proposed free trade agreement (FTA) between India and the European Union (EU) may not lead to immediate price reductions for most luxury cars sold in the country, with manufacturers saying the impact on consumer pricing is likely to be limited in the near term. Industry executives and analysts said while certain niche, fully imported models could benefit over time, the bulk of the luxury car market is unlikely to see a material change. (Read More)

While inaugurating the Indian Energy Week in Goa, PM Modi has made a big remark on the free trade agreement. He said that the India-EU FTA has become example of coordination between two economies. There will give big boost to sectors such as jewellery, textile and create huge opportunities for crores of people.

Shrimp exporters also attracted strong buying interest. Avanti Feeds rose 3% to its day’s high of Rs 780 on the BSE, while Apex Frozen Foods surged 12% to its intraday high of Rs 296.

Textile shares gained sharply in Tuesday’s session. Gokaldas Exports climbed 5% to Rs 585 per share, KPR Mill rose 3% to a day’s high of Rs 875, and Welspun Living advanced 3.5% to Rs 125.25 on the BSE. Vardhman Textiles jumped 5% to Rs 422, while Trident gained 4% to Rs 26.42.

The India-EU trade pact has been under discussion for nearly 18 years, making it one of the country’s longest-running trade negotiations. The European Union is India’s largest trading partner in goods, with bilateral trade estimated at about $136 billion in 2024-25, according to PTI.

Shares of export-focused textile and shrimp companies saw renewed buying interest, rising as much as 12%, after India and the European Union concluded negotiations on their long-pending free trade agreement, widely described as the “mother of all trade deals”.

India set to sign defence pact with EU; key talks underway at Rajnath Singh’s office

India and the European Union are on the brink of sealing a long-awaited free trade agreement (FTA), with an announcement expected at the India–EU Summit in New Delhi on January 27. After nearly two decades of stalled negotiations, both sides are signalling political readiness to close one of the most complex trade pacts India has ever attempted, a deal EU leaders have dubbed the “mother of all deals”. (Read More)

For the first five years, battery-electric vehicles will remain outside the proposed tariff reduction framework. The government aims to safeguard recent investments by domestic manufacturers such as Tata Motors and Mahindra & Mahindra as India’s EV ecosystem matures. After this period, electric vehicles are expected to be brought under a similar duty structure.

BMW Group India President and CEO Hardeep Singh Brar said a reduction in customs duties on imported vehicles under the FTA could help expand India’s luxury car market. Speaking to PTI, he noted that luxury vehicles account for only about 1 per cent of the passenger vehicle market, adding that the move would benefit consumers without affecting mass-market players.

The import duty on eligible vehicles will be reduced from the current peak rate of up to 110 per cent to 40 per cent initially. Over time, these duties are expected to be lowered further to around 10 per cent, easing entry for European manufacturers such as Volkswagen, Mercedes-Benz and BMW, the report said.

Under the proposed framework, the government has agreed to lower taxes on a limited number of cars imported from the 27-nation EU bloc with an import price exceeding 15,000 euros (about USD 17,739), sources familiar with the discussions told Reuters.

India plans to reduce import duties on cars from the European Union as part of a proposed free trade agreement that is expected to be announced today, according to a Reuters report. The move is aimed at improving market access for European automakers while advancing broader trade negotiations between the two sides.

Electronic goods were the second-largest export category to the EU, valued at $11.3 billion in 2024-25.

Refined petroleum products, India’s largest export to the EU at $15.0 billion in FY25, are unlikely to see significant gains from the FTA as they already face low tariffs and are driven more by global oil prices than trade barriers.

This 5-8 percent assumption is a commonly used rule of thumb in trade policy analysis and is frequently applied by governments, as well as in WTO, UNCTAD, and academic studies, to estimate near-term benefits from tariff cuts and reduced regulatory barriers.

The projected increase is based on an assumed 5-8 percent rise in FTA-sensitive exports, excluding refined petroleum products, which are less responsive to tariff changes.

The gains from tariff reductions or eliminations will accrue only after the FTA is implemented, a process that could take at least a year after the agreement is formally signed.

A free trade agreement with the European Union could lift India’s exports by an additional $3-5 billion in the near term. Indian shipments to the EU stood at $75.9 billion in 2024-25.

European Commission President Ursula von der Leyen, on a four-day India visit starting January 24, is set to discuss the deal at a January 27 summit with Prime Minister Narendra Modi and European Council President Antonio Costa. With bilateral goods trade estimated at $136 billion in 2024-25, the EU remains India’s largest trading partner. The pact will require legal checks, joint signing, EU Parliament ratification and Indian Cabinet approval. Experts say the deal is expected to boost trade without significantly hurting domestic industries, given the complementary nature of the two economies.

EU Trade Commissioner Maros Sefcovic, currently in India with a delegation, termed the negotiations his most challenging so far. Noting that this was his tenth in-person meeting with Goyal, he said the two sides were close to concluding FTA talks after an intense year of negotiations.

Commerce Minister Piyush Goyal said India and the EU share a common vision for an ambitious pact that enhances business opportunities and public welfare. In a post on X responding to EU Trade Commissioner Maros Sefcovic, Goyal credited a year of sustained engagement and described the EU as a vital economic and strategic partner for India.

According to Reuters, the agreement will move to formal signing after standard legal scrutiny to ensure compliance. The announcement marks a political conclusion, while procedural steps will continue in the coming weeks.

Good morning and welcome to Moneycontrol. The long-awaited India-EU free trade agreement will be announced on January 27, Trade Secretary Rajesh Agrawal confirmed, bringing to a close nearly 18 years of negotiations. Both sides had signalled over the weekend that talks were nearing a decisive breakthrough.