India's billion-dollar trade deal may be the real show this Republic Day
- IBEF
- January 21, 2026
India stands on the threshold of a significant economic achievement as it prepares to announce the conclusion of close to two decades of negotiations on a Free Trade Agreement with the European Union during its 77th Republic Day celebrations in New Delhi. The agreement has been described by India’s Commerce and Industry Minister Mr. Piyush Goyal as “the mother of all trade agreements” and seeks to enhance trade relations between India and the 27-member bloc of the EU, which comprises one of the largest consumption markets and economic blocs in the world. The agreement seeks to enhance market access for Indian goods and services in textiles, engineering, pharmaceuticals, and Information Technology Services, as well as improve two-way investment and introduce new export market access in countries other than traditional partners as it concludes close to two decades of diplomatic trade negotiations that have been influenced by the advent of trade protectionism.
Although the actual agreement may take place after the requisite legal approvals some months down the line, what is significant is that the announcement itself after the January 27th summit is a critical turning point in the foreign trade path that India has been treading. Not only will the agreement lower import taxes, but it also seems likely that it would bring about improvements in the areas of regulatory cooperation, facilitation of business in the market, and economic engagement as the top leaders of the European Union are coming to India as chief guests. This arrangement is a manifestation of a two-fold objective for India.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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