Piyush Goyal: India-EU FTA to Form 2 Billion-Person Market, Likely by End-2026
The India-EU FTA will link 2 billion people and boost duty-free trade and investments; it is likely to be effective in 2026.
Commerce Minister Piyush Goyal on Tuesday said the India–European Union free trade agreement is expected to come into force within the 2026 calendar year, describing it as a landmark pact that will create a combined market of nearly two billion people.
Earlier in the day, India and the 27-nation European Union concluded negotiations on the long-pending trade agreement, often described as the “mother of all deals.” Once implemented, around 93 percent of Indian exports are expected to receive duty-free access to the EU, while imports of products such as luxury cars and wines from Europe are likely to become cheaper in India.
Responding to a question at a special briefing during the state visit of the President of the European Council and the President of the European Commission, Goyal said the agreement would now undergo legal scrutiny on a fast-track basis. He expressed confidence that the pact could be formally operational within 2026, allowing both sides to begin reaping its economic benefits.
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The minister noted that negotiations for the agreement had spanned more than two decades, underscoring the complexity and scale of the deal. He said the pact would link India, the world’s fourth-largest economy, with the European Union, the second-largest economic bloc, creating one of the most significant trade partnerships globally.
Taken together, India and the EU account for about 25 percent of global GDP and roughly one-third of global trade, estimated at around USD 33 trillion. Goyal said the agreement would unlock significant opportunities for investment and deepen economic cooperation across multiple sectors.
He added that by setting aside the most sensitive issues, both sides had arrived at a balanced, equitable, and fair agreement that would be mutually beneficial for industries in India and the EU. The EU has now become India’s 22nd free trade agreement partner, continuing the NDA government’s push to expand India’s global trade footprint since 2014.
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