India and EU Finalize Landmark Free Trade Agreement
India and the European Union have concluded negotiations on a comprehensive free trade agreement, aiming to eliminate tariffs on a vast majority of goods and services, thereby enhancing economic ties between the two regions.
India and the European Union have concluded negotiations on a comprehensive free trade agreement (FTA) after nearly two decades of discussions. The agreement aims to eliminate or reduce tariffs on over 90% of goods and services traded between the two regions, covering approximately a quarter of global GDP.
Under the terms of the FTA, India will eliminate or reduce tariffs on 96.6% of EU exports, while the EU will do the same for 99.5% of Indian goods by trade value. This includes significant reductions in tariffs on products such as German luxury cars and Indian textiles.
The agreement also encompasses frameworks for deeper defense and security cooperation, as well as mobility for skilled workers and students. This strategic partnership reflects both parties' efforts to diversify trade relationships amid global economic uncertainties.
The FTA is projected to cut €4 billion ($4.7 billion) in annual tariffs and boost trade from $136.5 billion to $200 billion by 2030. Formal signing and implementation are expected later in 2026.
Source
Lowy InstituteFirst reported
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