The European Commission on Friday forwarded to the European Council its proposals for the signing and conclusion of the India-European Union (EU) free trade agreement (FTA), a crucial step in plans to conclude the pact by the year-end.
“Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time. India’s main exports to the EU include machinery, appliances, chemicals, textiles, metals and petroleum products. The EU’s exports to India are dominated by industrial products, transport equipment and chemical products.
India-EU trade in goods and services is currently worth more than €180 billion a year, and the FTA will eliminate or reduce tariffs on 96% of EU goods exports to India. Tariff reductions will save around €4 billion a year in duties on European products. Bilateral trade in goods was worth €118 billion in 2025. Two-way trade in services amounted to €67 billion in 2025, with EU exports amounting to €29.2 billion and imports pegged at €37.8 billion.
This agreement brings together two of the world’s largest economies – a market of two billion people and around a quarter of global GDP,” Šefčovič said. The European Commission, which is the EU’s main executive body that proposes legislation and upholds EU treaties, said the proposal put forward on Friday is a key step to ensure that consumers and businesses can reap the benefits of the FTA as soon as possible.
