India and the European Union announced on Monday the conclusion of technical talks in preparation for a trade agreement described as “historic,” with the official announcement set for today, Tuesday, in New Delhi, according to Indian Commerce Ministry official Rajesh Agarwal.
Agarwal stated in a press statement that “the technical talks have been concluded, and both parties are ready to announce an agreement on the free trade treaty on January 27,” without providing details about the text of the agreement.
He added that “the agreement will be balanced and future-oriented, aiming to achieve better economic integration with the European Union, noting that it will also provide a significant boost to trade and investment between the two sides.”
The official announcement of the agreement is anticipated during the sixteenth summit between India and the European Union, which will bring together Indian Prime Minister Narendra Modi, European Council President Antonio Costa, and European Commission President Ursula von der Leyen today, Tuesday.
After nearly twenty years of negotiations interrupted by long pauses, the agreement is expected to open the Indian market, the largest in the world by population, more widely to trade with the European Union.
Negotiations were resumed in 2022 after a nine-year hiatus, following a high-level political commitment between New Delhi and Brussels aimed at accelerating the pace of discussions.
The resumption of talks occurred amid tensions in international trade relations, particularly following the imposition of tariffs by the United States on several of its partners, including a 50 percent additional tax on Indian products.
The European Union is India’s largest trading partner in goods, with bilateral trade reaching approximately $136.5 billion during the 2024-2025 fiscal year, having elevated the relationship to a strategic partnership in 2004.
In recent months, India has signed several trade agreements, particularly with the United Kingdom, New Zealand, and Oman, as part of a strategy to diversify its foreign markets and strengthen trade amidst shifts in the global economic landscape.
The conclusion of the free trade agreement between India and the European Union comes within a broader dynamic of reshaping international trade partnerships, shortly after the European Union signed an important trade agreement with the Mercosur bloc.
