On January 27, 2026, India and the European Union (EU) are set to announce a landmark bilateral Free Trade Agreement (FTA) at a time of growing global economic uncertainty. Amid rising concerns over potential US tariff measures and protectionist policies, the India-EU FTA is being seen as a vital and timely development that reinforces economic cooperation between two major global economies.
The announcement is expected during the India–EU Summit, where leaders from both sides will adopt a broader strategic roadmap. Negotiations for the agreement first began in 2007 but were stalled for several years due to differences over tariffs, regulatory standards, and market access. Renewed talks since 2022 have helped bridge key gaps, leading to a successful conclusion.
Often referred to as the “Mother of All Trade Deals,” the agreement is expected to significantly deepen economic ties between India and the EU, which together account for nearly 20% of global trade and about 25% of the world’s population. The FTA aims to reduce trade barriers, enhance supply-chain resilience, and create a more stable framework for cross-border investments.
European leadership has highlighted the importance of strengthening partnerships based on open markets and strategic flexibility, while India sees the agreement as a major opportunity to expand exports, attract foreign investment, and reduce over-dependence on any single market. In the backdrop of uncertain US trade policies, the pact signals a shared commitment to a rules-based global trading system.
With bilateral trade already growing steadily across goods and services, the India-EU Free Trade Agreement is expected to provide a strong boost to long-term economic cooperation and global trade stability.
