India and the European Union are expected to sign their long-pending free trade agreement (FTA) by the end of 2026, with the pact likely to come into effect from March 2027, Commerce and Industry Minister Piyush Goyal said on Wednesday. The announcement provides one of the clearest timelines yet for the conclusion of negotiations between the two major economic partners.
Speaking at an event, Goyal said India and the European Union have reached an understanding on the broad roadmap for completing the agreement. He added that the legal review of the proposed text is currently underway and both sides are working towards completing the remaining procedural requirements before the formal signing.
“We have agreed to sign the final India-EU FTA by the end of 2026 and hope to operationalise the agreement by March 2027,” Goyal said. The minister indicated that discussions between India and the 27-member bloc have moved closer to the final stage after years of negotiations covering trade, investment, market access and regulatory issues.
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The proposed free trade agreement is expected to enhance economic cooperation between India and the European Union by reducing tariffs, improving access for businesses and establishing a more stable framework for trade and investment. The pact is also expected to benefit companies operating across multiple sectors by creating greater opportunities in one of the world’s largest markets.
Earlier, Goyal had said that the legal review, also known as legal scrubbing, of the agreement was expected to be completed within 15 to 20 days. The process is considered an important step before the final text can be approved and prepared for signing by both sides.
The India-EU FTA is being viewed as a significant component of India’s broader strategy to expand trade partnerships with major global economies. Industry groups expect the agreement to boost export opportunities in sectors including engineering goods, textiles, pharmaceuticals, leather, gems and jewellery, while also encouraging higher investment flows between India and European nations.
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