India and the European Union have announced the conclusion of negotiations for a free trade agreement (FTA), marking a key milestone in one of India’s most strategic economic partnerships. Structured as a modern, rules-based trade pact, the FTA addresses contemporary global challenges while enabling deeper market integration between the world’s fourth- and second-largest economies.
With a combined market valued at over Rs 2,091.6 trillion ($24 trillion), the agreement opens up significant opportunities for trade and innovation for nearly two billion people across India and the EU. The FTA provides unprecedented market access for more than 99 per cent of India’s exports by trade value, while retaining policy flexibility for sensitive sectors and reinforcing India’s developmental priorities.
According to the founder and chairman of Bharti Enterprises, the conclusion of negotiations for the India–EU FTA sends a strong signal of trust, stability and long-term partnership at a time of shifting global economic dynamics. He said the agreement reflects the decisive leadership and strategic resolve of the prime minister of India and European political leaders in strengthening bilateral ties. He added that the FTA is expected to open new avenues for collaboration, particularly in digital infrastructure, space connectivity and secure networks, offering European investors opportunities to innovate and scale with India for global markets.
Meanwhile, according to the India Cellular and Electronics Association, the conclusion of the India–EU FTA could enable India to export electronics goods worth $100 billion by 2040. These exports would be underpinned by strong domestic manufacturing, job creation, innovation and India’s growing role as a globally trusted supplier.