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India and the European Union have finally shaken hands on a free trade agreement, ending an 18-year negotiation marathon that began in 2007.
The deal is expected to be signed later this year and could kick in from early next year.
Why it matters: with global trade getting messy and the US turning more protectionist, India is looking to widen its export lanes. A pact with the EU links two heavyweight economies and can open a much bigger runway for Indian businesses.
What changes for you: some European imports could get cheaper.
The EU says tariffs on 96.6% of its goods exports to India will be cut or removed, translating into up to €4 billion a year in duty savings.
That covers everything from processed foods and fruit juices to olive oil, machinery, medical equipment, chemicals, pharmaceuticals, and even aircraft.
Duties on spirits are expected to drop to 40%, while cars and wines get concessional access.
What India gets: easier entry into the EU’s 27-country market. Most Indian goods are expected to get zero-duty access, with a few exceptions like autos and steel. Labour-heavy sectors like apparel, footwear, and chemicals could be the big winners.
Plus, this isn’t just about trade, both sides also signed a strategic defence partnership pact and a mobility agreement, signalling a broader India-EU reset.
