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Brussels, |
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The EU–India Free Trade Agreement (FTA)
The agreement is not yet legally in force: it must still be signed and complete the respective EU and Indian ratification procedures.
EU–India Trade Relations
EU–India Free Trade Agreement: Products, Tariffs and Market Access
The EU–India Free Trade Agreement will substantially reduce or eliminate customs duties across a broad range of industrial and agri-food products, creating new market-access opportunities for European exporters and Indian companies operating in the EU Single Market.
Introduction
The EU–India Free Trade Agreement marks a major change in the economic relationship between the European Union and India. By progressively removing or reducing customs duties across a very broad range of goods, the agreement will change the conditions under which European and Indian companies access each other's markets.
Negotiations on the Free Trade Agreement were concluded on 27 January 2026. The agreement covers thousands of tariff lines and reaches across industrial manufacturing, automotive products, machinery, chemicals, pharmaceuticals, medical equipment, textiles, precious metals, food and beverages.
For European companies, one of the most significant effects will be the reduction of Indian import tariffs, which remain comparatively high in a number of sectors. Some European industrial products currently face duties above 20% or 30%, while tariffs on certain vehicles, alcoholic beverages and food products can exceed 100%.
Under the FTA, India will eliminate or reduce tariffs on 96.6% of EU goods exports. According to the European Commission, the tariff concessions could save EU exporters approximately €4 billion in customs duties every year.
The agreement is reciprocal. Indian exporters will obtain substantially improved access to the EU Single Market, including in important sectors such as textiles, apparel, footwear, chemicals, pharmaceuticals, engineering products, gems and jewellery, fish and seafood.
Important: the EU–India FTA is not yet in force
The tariff reductions and other preferential conditions described in this
article are not yet legally applicable. Negotiations were concluded on
27 January 2026, but conclusion of the negotiations did not itself bring
the FTA into force. On 11 September 2026, the European Commission submitted
proposals to the Council of the EU for the signature and conclusion of the
agreement. The next formal steps include authorisation by the Council for
signature, signature by the EU and India, consent by the European
Parliament, the Council decision concluding the agreement, and completion
of India's own internal ratification procedures. Only after the procedures
required for entry into force have been completed will the FTA become
binding under international law and its preferential trade provisions
start to apply. As of 23 September 2026, no definitive date for entry into
force has been established. Until then, businesses must continue to apply
the currently applicable customs duties and trade rules. Furthermore, once
the FTA enters into force, not all tariff reductions will take effect
immediately: a number of concessions will be phased in over transition
periods of five, seven or ten years.
EU–India trade: key figures
€120bn
EU–India bilateral trade in goods in 2024
96.6%
EU goods exports covered by Indian tariff elimination or reductions
€4bn
Potential annual customs-duty savings for EU exporters
2bn
Approximate combined population of the EU and India
European industrial products entering the Indian market
Some of the most significant tariff changes concern industrial products. European exporters currently face Indian import duties that can exceed 20%, 30% or even 40% in several manufacturing sectors.
Under the agreement, many of these duties will either be eliminated when the FTA enters into force or progressively phased out over transition periods that can extend to five, seven or ten years.
| Product / Sector | Current Indian Tariff | FTA Treatment | Implementation |
|---|---|---|---|
| Machinery & Electrical Equipment | Up to 44% | 0% on almost all products | Progressive implementation, generally within 5–10 years |
| Aircraft, Aerospace Products & Avionics | Up to 11% | 0% on almost all products | Mostly immediate or phased in over approximately five years |
| Optical, Medical & Surgical Equipment | Up to 27.5% | 0% on around 90% of products | Immediate liberalisation or progressive elimination |
| Chemicals | Up to 22% | Almost entirely reduced to 0% | Mostly at entry into force or during the initial phase-in period |
| Pharmaceuticals | Around 11% | Almost entirely reduced to 0% | Progressive implementation |
| Plastics & Plastic Products | Up to 16.5% | Almost entirely reduced to 0% | Mainly phased out over several years |
| Iron & Steel Products | Up to 22% | Almost entirely reduced to 0% | Immediate or progressive elimination depending on the product |
| Motor Vehicles | Up to 110% | Reduced to approximately 10% | Subject to a quota of up to 250,000 vehicles |
| Automotive Components | Varies by product | Most tariffs progressively eliminated | Generally over 5–10 years |
| Pearls, Precious Stones & Precious Metals | Up to 22.5% | Tariff elimination on part of the sector and reductions on additional product categories | Progressive implementation |
| Cosmetics | Up to 22% | Progressive tariff elimination | Mainly over 5–7 years |
| Ceramics | Varies by product | Significant tariff elimination | A substantial share liberalised at entry into force |
| Boats & Vessels | Varies by product | Most tariffs eliminated | Predominantly at entry into force |
Transition periods matter.
The FTA does not mean that all customs duties disappear immediately.
Depending on the tariff line, reductions may take effect when the agreement
enters into force or be phased in over periods of five, seven or ten years.
Certain sectors are also subject to quotas or specific market-access
conditions.
Agri-food products and beverages
The agri-food sector is particularly important for European exporters because India currently applies comparatively high duties to many imported food and beverage products.
According to the European Commission, tariffs on EU agri-food exports to India currently average more than 36%. For certain beverages, current duties can reach 110% or 150%.
The FTA therefore creates significant new market-access opportunities for European producers of wine, spirits, beer, olive oil, processed foods, fruit and other agricultural products.
| Product | Current Indian Tariff | FTA Treatment |
|---|---|---|
| Wine | Up to 150% | Reduced to approximately 20–30%, depending on category and price segment |
| Spirits | Up to 150% | Reduced to approximately 40% |
| Beer | Around 110% | Reduced to approximately 50% |
| Olive Oil | High existing tariff | Significant tariff reduction under the agreement |
| Margarine & Other Vegetable Oils | Up to 45% | Tariffs substantially reduced or eliminated |
| Kiwifruit & Pears | Varies by product | Preferential market access, including tariff reductions within applicable quotas |
| Fruit Juices | Up to approximately 55% | Tariffs eliminated for relevant categories |
| Non-Alcoholic Beer | High existing tariff | Tariff elimination |
| Bread, Bakery Products & Biscuits | Up to approximately 50% | Tariffs eliminated for many products |
| Pasta | Varies by product | Tariff elimination or substantial reduction |
| Chocolate & Confectionery | Up to approximately 50% | Tariffs eliminated for many products |
| Pet Food | Varies by product | Improved market access and tariff elimination |
| Sheep Meat | Approximately 33% | Tariff elimination |
| Sausages & Other Meat Preparations | Up to approximately 110% | Significant tariff reduction |
Indian products entering the EU market
The agreement is reciprocal. Indian companies will also benefit from improved access to the European Single Market.
The EU will eliminate customs duties on more than 90% of tariff lines. Taking partial liberalisation and additional concessions into account, preferential treatment will cover approximately 99% of EU imports from India.
Important Indian export sectors expected to benefit include textiles, clothing, footwear, leather products, chemicals, pharmaceuticals, engineering goods, gems and jewellery, fish and seafood.
Manufacturing and industrial products
- Textiles
- Clothing and apparel
- Footwear
- Leather products
- Chemicals
- Pharmaceuticals
- Engineering products
- Gems and jewellery
- Precious-stone products
Food and marine products
- Fish
- Seafood
- Processed marine products
- Selected agricultural products benefiting from preferential access
Ten main product areas affected by the FTA
For companies assessing the commercial implications of the agreement, the products concerned can broadly be organised into ten principal sectors.
- Machinery & Electrical Equipment
- Automotive & Auto Components
- Aerospace & Avionics
- Medical Devices & Optical Equipment
- Pharmaceuticals
- Chemicals, Cosmetics & Plastics
- Iron, Steel & Industrial Materials
- Textiles, Apparel, Leather & Footwear
- Gems, Jewellery & Precious Metals
- Agri-food & Beverages
Sensitive agricultural sectors remain protected
The agreement does not provide complete liberalisation for every agricultural product. The European Union has retained tariff protection for several sensitive agricultural sectors, including beef, poultry, rice and sugar.
Preferential tariff access also does not remove EU regulatory requirements. Indian agricultural and food exports entering the European Union will continue to have to comply with EU food-safety, sanitary, phytosanitary and other applicable regulatory standards.
Tariffs are only part of market access
The commercial impact of the FTA cannot be assessed solely by looking at customs duties. European and Indian companies will also need to consider product standards, conformity assessment procedures, technical regulations, customs procedures, rules of origin, sanitary requirements and sector-specific regulatory obligations.
For exporters, the practical value of the agreement will therefore depend both on the tariff concession applicable to an individual product and on the regulatory conditions governing access to the destination market.
For businesses:
the relevant question is not simply whether a product is covered by the
FTA. Companies need to identify the applicable tariff line, the date on
which the preferential rate becomes effective, any applicable quota,
the relevant rule of origin and the regulatory requirements that remain
applicable in the importing market.
Current legal status and next steps
As of 23 September 2026, the EU–India FTA has not yet entered into force.
Negotiations were concluded on 27 January 2026. On 11 September 2026, the European Commission submitted its proposals to the Council for the signature and conclusion of the agreement. The agreement must proceed through the EU's formal approval procedure, including Council action, signature and the consent of the European Parliament. India must also complete the internal procedures required on its side.
The texts published by the European Commission remain subject to the completion of the formal process. The agreement will become binding under international law only after the procedures necessary for its entry into force have been completed.
Negotiations were concluded on 27 January 2026. On 11 September 2026, the European Commission submitted its proposals to the Council for the signature and conclusion of the agreement. The agreement must proceed through the EU's formal approval procedure, including Council action, signature and the consent of the European Parliament. India must also complete the internal procedures required on its side.
The texts published by the European Commission remain subject to the completion of the formal process. The agreement will become binding under international law only after the procedures necessary for its entry into force have been completed.
Official sources
European Commission – EU and India conclude landmark Free Trade Agreement
European Commission – EU–India Agreements
European Commission – Texts of the EU–India Agreements
European Commission – EU and India conclude landmark Free Trade Agreement
European Commission – EU–India Agreements
European Commission – Texts of the EU–India Agreements
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