FREE TRADE AGREEMENT BETWEEN INDIA AND THE EUROPEAN UNION
On Thursday, January 27, 2026, the European Union and India formalized the conclusion of a major free trade agreement. This agreement, which is still subject to ratification by both parties, covers approximately a quarter of global GDP and a third of international trade, paving the way for the development of trade in goods, which has already been growing rapidly in recent years.
Goods concerned
The agreement provides for a significant reduction in Indian tariffs on a wide range of European products, with a schedule for gradual reductions over several years. India will eliminate or reduce its tariffs on nearly 97% of European exports by value, with gradual liberalization over several years. Among the sectors most affected, wines and spirits, as well as certain processed food products (pasta, chocolate), will benefit from significant reductions or even total elimination of tariffs, depending on the tariff lines. In return, the European Union has committed to eliminating or reducing tariffs on nearly 99% of Indian exports to the EU over a period of several years. The Indian sectors most affected include textiles, clothing, and pharmaceuticals.
Pending ratification
The free trade agreement between the European Union and India has yet to be formally signed and ratified by the relevant institutions on both sides. It is expected to come into force in 2026, but its actual implementation will depend on the pace of ratification procedures and could take place as early as 2027. In the meantime, this development confirms the importance of preparing supply chains for a sustained increase in trade between Europe and India.
Balguerie Group, present in India for over 20 years with a network of agents in major ports and airports, continues to monitor these developments to support its customers in this strategic area by offering solutions tailored to all your transport, tracking, and customs clearance projects. Read our article Your goods around the world: focus on India to find out more about our services.
