India–European Union Free Trade Agreement

India–European Union Free Trade Agreement

¨     India–European Union Free Trade Agreement (FTA) was politically concluded on 27 January 2026 after nearly two decades of negotiations.

¨     The agreement is expected to come into force in early 2027 after legal scrutiny and ratification by both India and the European Union.

India–EU Trade Framework

¨     The India–EU FTA is a bilateral trade agreement between India and the European Union.

¨     The European Union is a 27-member economic and political bloc.

¨     The agreement aims to liberalise trade in goods and services.

¨     It also seeks to enhance investment flows and strengthen regulatory cooperation.

¨     The deal is expected to deepen economic ties between India and Europe.

Ratification Process in the European Union

¨     The ratification process in the European Union generally takes around one year.

¨     Approval from the Council of the European Union is required.

¨     Consent of the European Parliament is also mandatory.

¨     Legal teams of the European Union are currently examining the draft agreement.

¨     The legal review process is expected to be completed by July 2026.

Investment Protection Agreement and Concerns

¨     The main Free Trade Agreement does not include a comprehensive investment chapter.

¨     Separate negotiations are continuing for an Investment Protection Agreement.

¨ European companies have expressed concerns over the absence of full investment protection provisions in the main agreement.

¨     Businesses believe that clearer investment safeguards would provide greater confidence to foreign investors.