India and EU Forge New Trade Relations with Landmark Deal

Tue Feb 03 2026 15:46:16 GMT+0200 (Eastern European Standard Time)

India and the European Union are set to announce a pivotal trade agreement, enhancing economic partnerships amid global tensions. This deal signifies a commitment to collaboration over tariffs.

After years of negotiations, India and the EU are finalizing a landmark trade deal aimed at boosting trade relations. Both sides seek to strengthen their economic ties in response to global pressures, particularly from the US, with the announcement expected to demonstrate a shared commitment to free trade amidst rising protectionism. The deal will enhance India's export access and pave the way for smoother European investment and goods flow into India.

The European Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US.

India's Commerce Secretary Rajesh Agarwal said on Monday that negotiations had been wrapped up and the deal finalized.

European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are in Delhi, where the announcement is expected.

Both India and the EU are seeking to strengthen strategic and trade ties with the rest of the world as they contend with economic and geopolitical pressure from the US.

Delhi is grappling with 50% tariffs imposed by President Donald Trump last year amid talks aimed at securing a trade deal between India and the US that are still dragging on.

The trade deal will send an important political message to the world that India and the EU believe more in trade agreements than in tariffs at a time when protectionism is on the rise.

Von der Leyen and Costa arrived in Delhi over the weekend and were chief guests at India's colourful Republic Day celebrations.

The deal will expand market access for Indian exports to Europe while easing entry for European investments and goods, such as cars and beverages, into Asia's third-largest economy.

This is a perfect example of a partnership between two major economies of the world... This agreement represents 25% of the global GDP and one-third of global trade, Modi said.

Talks for a deal between India and the EU started in 2007 but stalled in 2013 over roadblocks in market access and regulatory demands. Discussions were formally restarted in July 2022.

Officials from both sides worked hard to finalize outstanding chapters of the agreement, aiming to wrap it up before the EU leaders' visit. Analysts will be carefully examining the specifics of the finalized agreement.