India Navigates Divergent Trade Agreements with EU and US

On January 27, 2026, India and the European Union concluded negotiations on a comprehensive Free Trade Agreement (FTA) aimed at eliminating tariffs on a vast majority of goods to enhance economic cooperation. The formal announcement was made during the 16th India-EU Summit held in New Delhi, India. Key figures involved in the process included Rajesh Agrawal, Piyush Goyal, Ursula von der Leyen, and António Costa.

Concurrently, India is also engaging in an interim trade framework with the United States. These two trade agreements differ in their structure, tariff commitments, and strategic objectives, reflecting India's approach to managing its trade relations with both the EU and the US.