India-EU Free Trade Agreement Expected by End of 2026
Commerce Minister Piyush Goyal announced the India-EU FTA should be signed by late 2026, urging Indian firms to upgrade quality standards to maximize trade gains.
Union Commerce and Industry Minister Piyush Goyal announced during a business roundtable in Berlin that the India-European Union Free Trade Agreement (FTA) is expected to be signed by the end of 2026 and could become operational within four to five months. The agreement, which was finalized on January 27, 2026, by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, focuses on supply-chain resilience, the green transition, and emerging technologies such as semiconductors and artificial intelligence.
During his visit to Germany, Goyal urged Indian and German companies to begin exchanging product samples and identifying collaborators to ensure they are ready for immediate implementation. This push follows a decline in Indian exports to the EU, which fell 4.57% to USD 72.4 billion in 2025-26, while imports rose 9% to USD 66.18 billion.
Anant Swarup, Secretary General of the Federation of Indian Chambers of Commerce and Industry (FICCI), warned that tariff concessions alone would not increase exports. He stated that Indian firms, particularly MSMEs in textiles, chemicals, and engineering, must adopt a strategic approach by upgrading product quality and complying with strict EU sustainability and carbon emission standards. Swarup identified the Netherlands as a critical logistics hub via the Rotterdam port and highlighted potential collaborations in semiconductor lithography with ASML.
