Image Source : India Today
At the 16th India–EU Summit in New Delhi (Jan 27, 2026), Prime Minister Narendra Modi, European Commission President Ursula von der Leyen, and European Council President Antonio Costa announced the conclusion of negotiations on a comprehensive Free Trade Agreement (FTA). The pact, nearly 20 years in the making, promises tariff cuts, expanded market access, and deeper strategic cooperation.
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India–EU Summit 2026 – “Mother of All Trade Deals”
India and the European Union have finalized a landmark Free Trade Agreement (FTA) after nearly two decades of negotiations. The announcement was made during the 16th India–EU Summit in New Delhi, hosted by Prime Minister Narendra Modi with EU leaders Ursula von der Leyen and Antonio Costa.
FTA Conclusion: Negotiations officially concluded; legal text review and ratification expected in 2026, with implementation targeted for early 2027.
Tariff Reductions:
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Automobiles & Machinery: Import tariffs to be cut from current levels (up to 110%) to 40% initially, with a roadmap to 10% over time.
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Luxury Goods & Wines: Significant duty reductions to boost EU exports.
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Indian Exports: Enhanced access for textiles, pharmaceuticals, IT services, and agricultural products.
Strategic Cooperation Beyond Trade:
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Defence & Security: Joint initiatives to strengthen maritime security and counter-terrorism.
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Climate Action: Collaboration on renewable energy, carbon reduction, and sustainable technologies.
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Digital & Critical Tech: Cooperation in AI, semiconductors, and cybersecurity.
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Global Context: The deal strengthens India–EU ties amid global trade uncertainties, positioning both as champions of a rules-based international order.
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Political Significance: Leaders hailed the agreement as the “mother of all trade deals”, underscoring its transformative potential for bilateral relations.
Sectoral Impact
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Indian Automakers: Potential pressure from reduced tariffs on European cars.
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Pharma & IT Services: Major beneficiaries with expanded EU market access.
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Agriculture: Indian producers gain entry into high-value EU markets.
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Luxury & Premium Goods: EU exporters expected to see strong growth in India.
Sources: Reuters, The Economic Times, India Today, India TV, BusinessLine
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India and EU Conclude Long-Awaited Free Trade Agreement at New Delhi Summit
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