Once adopted and brought into force, the agreement will eliminate or reduce tariffs on 96% of EU goods exports to India, according to the Commission. The tariff cuts are expected to save European exporters around €4 billion a year in duties.
The deal is also intended to remove unnecessary trade barriers and create a more level playing field for European companies accessing the Indian market. EU consumers are expected to benefit from greater choice and potentially more competitive prices as trade barriers are reduced.
The EU and India currently trade more than €180 billion worth of goods and services each year, supporting nearly 800,000 jobs in the European Union, the Commission said.
Pact moves to EU Council
The Commission’s proposal marks a key procedural step in the implementation of the agreement. The Council will now consider whether to authorise the signing and conclusion of the pact.
If the Council approves the proposal, the agreement will be signed and will then require the consent of the European Parliament before it can be formally concluded and enter into force.
India, meanwhile, is undertaking its own internal procedures for ratification, according to the Commission.
Trade pact gains urgency amid global uncertainty
The European Commission said the proposal is part of a fast-track procedure for implementing FTAs, introduced earlier this year by Trade and Economic Security Commissioner Maroš Šefčovič. The process is intended to accelerate trade agreements at a time of geopolitical uncertainty and increasing pressure on the global trading system.
The EU-India agreement also reflects Brussels’ broader effort to strengthen economic relationships with key partners in the Indo-Pacific region.
For India, the pact would deepen access to the European market, while European businesses would gain improved access to one of the world’s largest and fastest-growing economies.
The eventual entry into force will depend on the completion of approval and ratification procedures on both sides.
