India-EU FTA Talks Concluded, Over 99% Indian Exports by Value To Get Zero-Duty Access Into 27-Member Bloc

New Delhi, Jan 27 (KNN) India and the 27-member European Union (EU) have concluded negotiations for the much-awaited Free Trade Agreement (FTA) even as a similar deal with the United States of America (US) remains elusive.

The trade deal with the EU provides for over 99% of Indian exports gaining preferential (zero duty) entry into the EU, unlocking massive growth potential for sectors such as textile, leather, engineering goods, gems and jewellery, and handicrafts once the FTA between the two trade partners come into force.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen today jointly announced the conclusion of the free trade agreement at the 16th India–EU Summit.

Making the announcement of the landmark agreement, Prime Minister Narendra Modi said that people around the world are referring to it as the "Mother of All Deals."

A total of 9,425 tariff lines have been opened for Indian goods in the EU. Textiles, apparel and clothing from India would get zero-duty access into the 20 trillion EU market from day one of the agreement coming into force.

The FTA is expected to open new opportunities for MSMEs and create jobs for women, artisans, youth and professionals.

"The India–EU FTA gives a decisive boost to its labour-intensive sectors such as textiles, apparel, leather, footwear, marine products, gems and jewellery, handicrafts, engineering goods, and automobiles bringing down tariffs up to 10% on almost 33 billion dollar of exports to zero on entry into force of the Agreement," Commerce Ministry said in a press note.

The European Union is India’s one of the largest trading partners, with bilateral trade in goods and services growing steadily over the years. In FY25, India’s bilateral trade in goods with the EU stood at US$136.54 billion with exports worth US$75.85 billion and imports amounting to US$60.68 billion. India-EU trade in services reached US$83.10 billion in 2024.

The Commerce Ministry said that India-EU FTA is set to empower workers, artisans, women, youth, and MSMEs, while integrating Indian businesses more deeply into global value chains.

As regards automobiles imports, the Commerce ministry said that a calibrated, quota-based liberalisation package would allow EU automakers to introduce higher-priced models in India while also creating future opportunities for Make in India and exports.

"The reciprocal market access in the EU market will also open up opportunities for India-made automobiles to access the EU market," it noted.

(KNN Bureau)