The India–European Union Free Trade Agreement (FTA), often described by leaders as the “mother of all deals,” is a historic pact concluded in late January 2026 after nearly two decades of negotiations that aims to significantly liberalize trade in goods and services between India and the 27-member EU; the agreement envisages reducing or eliminating tariffs on more than 90 % of goods traded, including phased cuts on automobiles (with duties on many EU cars in India falling from historically high levels to as low as 10 % over time), substantial reductions on wines, spirits and other products, and will allow Indian exporters in labour-intensive sectors such as textiles, leather, chemicals, gems and jewellery easier access to EU markets while European firms gain better access to India’s services and manufacturing sectors, alongside strengthened intellectual property protections and cooperation on sustainability and regulatory issues, potentially doubling EU exports to India by 2032 and generating billions in tariff savings, even as certain sensitive agricultural products remain excluded and procedural ratification steps (such as legal vetting and approvals by the European Parliament and Indian authorities) are still pending before formal implementation can begin, likely in 2027.
