India and EU May Sign Trade Deal by Year End

German Ambassador to India Jasper Wieck announced that the Free Trade Agreement (FTA) between India and the European Union could be signed by the end of 2026. The negotiations for the pact concluded at the beginning of the year, ending a process that spanned two decades.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen jointly announced the FTA on January 27 during the 16th India-EU Summit. Following the expected signing, the agreement will require ratification by both the Indian and European Parliaments.

Experts estimate the FTA has the potential to double trade turnover between India and the EU within five years. Bilateral trade in goods reached USD 136.54 billion in 2024-25, while trade in services reached USD 83.10 billion in 2024.