Mumbai: India and the European Union have concluded negotiations for a free trade agreement covering goods, services, and other economic areas, officials said. The deal, in the works for more than 18 years, is set to be announced by leaders from both sides on Tuesday.

Commerce Secretary Rajesh Agrawal confirmed that the India-EU FTA negotiations have concluded. He described the agreement as balanced and forward-looking, aimed at boosting trade and investment between the two sides.

The FTA has been under discussion for over 18 years and gained momentum in 2024. Officials said the agreement will undergo legal vetting over 5–6 months and may be ratified and implemented by early 2027.

The agreement does not require approval from each of the 27 EU member states, as it does not contain “mixed competence.” However, it will need to be ratified by the European Parliament.

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Key trade benefits

India is expected to gain zero-duty access for textiles, leather, and marine products. In return, concessions may be made in sectors such as automobiles, wines, and spirits. European commissioner Maroš Šefčovič said the plan could include full or partial tariff reductions on 97–99% of goods, with sensitivity considered for agriculture and dairy.

The auto sector is a key part of the deal. India specialises in small cars, while European manufacturers focus on larger, technologically advanced vehicles. The agreement aims to create complementary opportunities, develop supply chains, and boost cooperation between automakers.

The FTA is intended to build resilient supply chains, reduce risky dependencies, and create jobs in both India and the EU, officials said. It also reflects a broader strategic partnership beyond trade, strengthening ties between the two economies.