India and the European Union (EU) have discussed preparations for implementing their Free Trade Agreement (FTA), focusing on improving market access, simplifying customs procedures and strengthening supply chain cooperation during high-level meetings in Brussels. Commerce Secretary Mr. Rajesh Agrawal held discussions with senior European Commission officials, including Ms. Ditte Juul Jorgensen, Director-General of the Directorate-General for Trade and Economic Security; Mr. Gerassimos Thomas, Director-General of the Directorate-General for Taxation and Customs Union; and Mr. Koen Doens, Director-General of the Directorate-General for International Partnerships. The discussions covered facilitating two-way trade, enhancing supply chain resilience, improving customs cooperation and promoting digitally enabled trade procedures to reduce transaction costs for businesses. The meetings follow the conclusion of FTA negotiations at the 16th India-EU Summit on January 27, 2026. The agreement is undergoing legal scrubbing and verification ahead of its proposed signing in mid-December 2026, with full ratification and entry into force targeted for mid-2027.
The proposed agreement is expected to eliminate tariffs on over 99% of Indian exports to the EU, benefiting labour-intensive sectors such as textiles, leather and jewellery. India will also reduce duties on over 96% of European goods, including a phased reduction in automobile tariffs to 10% under an annual quota of 250,000 vehicles. During his visit, Mr. Agrawal also met representatives of the Antwerp diamond industry to discuss certification, traceability, responsible sourcing and opportunities across the global diamond value chain. At a Business Europe roundtable, he highlighted India's economic growth and investment opportunities, while inviting European businesses to participate in its expanding value chains. Discussions with EU officials also covered development cooperation, sustainable development, clean energy and green technologies. India-EU merchandise trade stood at approximately Rs. 11.5 lakh crore (US$ 136.54 billion) in FY25, including Indian exports of around Rs. 6.4 lakh crore (US$ 75.85 billion), highlighting the importance of the partnership and the potential for further trade expansion.
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