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EU-India: What Changes with the Landmark Free Trade Agreement

Published January 27, 2026, 11:11
EU-India: What Changes with the Landmark Free Trade Agreement

The European Union and India have concluded a historic free trade agreement (FTA), the largest ever negotiated by either side. The agreement strengthens economic and political ties between the two powers, amidst growing geopolitical tensions. It is expected to double EU goods exports to India by 2032, eliminating or reducing tariffs on 96.6% of EU goods exports. Overall, tariff reductions are estimated to save around €4 billion annually in duties for European products. India is offering significant tariff reductions in areas such as automobiles, machinery, chemicals, and pharmaceuticals. The agreement also includes a dedicated chapter for small businesses and provisions for transparency and stability. Despite the reductions, certain sectors, such as agriculture, will have 'red lines' to protect domestic producers.