India, EU Close To Signing FTA
The proposed free trade agreement (FTA) between India and the 27-nation European Union (EU) is being hailed as the ‘mother of all deals,’ with negotiations in their final stages and an official announcement expected by 27 January, Commerce and Industry Minister Piyush Goyal said on January 16.
Calling it a ‘super deal,’ Goyal said the agreement would be mutually beneficial and open up massive opportunities for Indian exporters, significantly boosting sectors across goods and services. “This will be the mother of all deals,” he told reporters, highlighting the pact’s potential to expand India’s trade footprint in Europe.
The conclusion of the talks is timed to coincide with the state visit of European Council President Antonio Luis Santos da Costa and European Commission President Ursula von der Leyen from 25 to 27 January, who will also serve as Chief Guests at India’s 77th Republic Day celebrations.
Goyal noted that India and the EU enjoy a balanced trade relationship and that the two economies complement each other rather than compete. Once finalized, the FTA would become India’s largest trade pact, encompassing 27 developed European economies, including France, Germany, Italy, Spain, the Netherlands, Sweden and Denmark.
Commerce Secretary Rajesh Agrawal echoed the optimism, saying that the two sides are “very close” to finalizing the deal, with remaining issues expected to be resolved ahead of the EU leadership visit later this month.
The pact assumes particular importance amid global trade disruptions, including high tariffs imposed by the US on certain Indian products. The FTA is expected to help diversify export markets and reduce India’s dependence on China.
Currently, the EU accounts for around 17% of India’s total exports, while India represents about 9% of the bloc’s overseas shipments. In 2024–25, bilateral trade in goods totaled US$ 136.53 billion, with Indian exports worth US$ 75.85 billion and imports at US$ 60.68 billion, making the EU India’s largest trading partner in goods.
With a combined GDP of approximately US$ 20 trillion and a population exceeding 450 million, the EU remains one of the world’s largest trading blocs. For India, which exported US$ 437 billion in goods and US$ 387.5 billion in services in 2024–25, the FTA offers significant potential to further scale up trade and strengthen economic ties.
