India & EU Conclude Free Trade Pact at New Delhi Summit

India and the European Union on January 27 concluded a long-pending India-EU Free Trade Agreement at the India EU Summit 2026 in New Delhi, marking a major step in India EU trade relations.

The agreement was announced after talks between Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President António Costa at the New Delhi Summit.

The FTA brings together markets of nearly two billion people and accounts for close to one-fourth of global GDP, strengthening bilateral economic relations between India and the bloc.

Officials on both sides said the India European Union trade deal is aimed at expanding trade, improving market access, and strengthening cooperation in key sectors such as manufacturing, services, technology, and clean energy.

• India and EU conclude long-pending Free Trade Agreement at New Delhi Summit
• Narendra Modi and Ursula von der Leyen finalise landmark trade pact
• India-EU FTA to boost exports, market access and green, digital cooperation

According to Indian officials, the agreement will support export growth in sectors including textiles, pharmaceuticals, engineering goods, gems and jewellery, and marine products, while helping Indian companies integrate with global value chains. For the European Union, the deal provides improved access for automobiles, machinery, wine and spirits, and high-end industrial products. The EU estimates tariff reductions under the agreement could save its exporters up to €4 billion annually.

Prime Minister Modi said the pact would help Indian businesses expand globally and support domestic job creation, adding that the agreement complements India’s recent trade arrangements with other partners.

Alongside the trade deal, India and the EU signed cooperation frameworks covering green hydrogen cooperation, digital public infrastructure, financial regulation, and mobility of skilled professionals. Officials described the FTA as a flexible framework with built-in review mechanisms.

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The agreement will now move to the ratification stage, requiring approval by the European Parliament ratification process, the EU Council, and Indian authorities, before it can be implemented.