European Commission Submits India-EU Free Trade Agreement Proposal to Council for Final Approval

The European Commission has formally submitted its proposal to the European Council to sign and conclude the historic Free Trade Agreement (FTA) between India and the European Union. Marking a decisive step in the ratification process, this submission signifies that legal vetting of the agreement text has been completed on both sides. Described as one of the largest economic pacts in global trade, the FTA will create an integrated marketplace encompassing nearly two billion people. Once ratified by the EU Council and consented to by the European Parliament, the agreement will eliminate or reduce tariffs on 96 percent of European goods exported to India, saving European exporters an estimated €4 billion annually in customs duties. Simultaneously, Indian exporters in sectors such as textiles, pharmaceuticals, leather, and information technology will gain preferential market access across the 27 EU member states. Bilateral trade between India and the EU currently exceeds €180 billion per year in goods and services, supporting approximately 800,000 jobs in Europe alone. The agreement introduces predictable rules for cross-border investment, streamlines regulatory procedures, and addresses non-tariff trade barriers. Official sources indicate that both parties are aiming for formal signing by December 2026, with implementation slated for early 2027, providing a substantial boost to bilateral economic integration amid global economic shifts.