India and the European Union have confirmed a sweeping free trade agreement, ending almost 20 years of intermittent negotiations. Leaders on both sides hailed the deal as a breakthrough that significantly strengthens economic ties between the 27-nation bloc and the world’s most populous country, at a time of growing global trade uncertainty.
The agreement will gradually remove or reduce tariffs across a wide range of goods and services, creating freer movement between two markets that together account for around a quarter of global economic output. European exports such as machinery, chemicals and vehicles will face far lower duties, while Indian products including textiles, jewellery and marine goods will gain easier access to EU markets.
India said it had protected sensitive domestic sectors, including agriculture and dairy, while still opening new opportunities for farmers, manufacturers and small businesses. The deal also introduces a framework to make it easier for professionals to work temporarily across borders, alongside commitments to closer co-operation on investment, supply chains and security.
The pact carries clear political weight. Both Delhi and Brussels are navigating strained trade relations with the United States and see the agreement as a statement in favour of partnership over protectionism. While formal ratification will take place later this year, officials on both sides view the deal as a foundation for a deeper long-term relationship, extending beyond trade into defence, climate action and strategic collaboration.
