The European Union will formally sign a long-awaited free trade agreement with India by the end of 2026, marking a major step in strengthening economic ties between two of the world’s largest markets. The announcement signals accelerating cooperation on trade, investment, and supply chain diversification amid global economic uncertainty.
European Commission President Ursula von der Leyen confirmed the timeline following her meeting with Indian Prime Minister Narendra Modi at the G7 summit in France. She said both sides are moving quickly to finalize commitments under what she described as a landmark agreement.
The deal, initially concluded in January after years of negotiations, aims to reduce or eliminate tariffs on the majority of goods traded between the EU and India. Officials say it is designed to strengthen economic resilience and reduce dependence on traditional markets such as the United States.
According to EU estimates, the agreement could double European exports to India by 2032 and generate significant savings in customs duties for European companies. Around 96.6% of traded goods by value are expected to see tariff reductions under the pact.
Once signed by the end of 2026, the agreement could enter into force in 2027, reshaping trade flows between Europe and South Asia. Analysts say the deal reflects a broader global shift toward strategic trade partnerships in a more fragmented international economy.