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European Commission - Announcement EU and India conclude negotiations for largest trade deal in their history Brussels, 28 January 2026 President Ursula von der Leyen , along with President António Costa , was in New Delhi this week to finalise the negotiations for a historic and ambitious free trade agreement (FTA) which further cements a relationship that goes back thousands of years. The two partners also signed a...
European Commission - Announcement EU and India conclude negotiations for largest trade deal in their history Brussels, 28 January 2026 President Ursula von der Leyen , along with President António Costa , was in New Delhi this week to finalise the negotiations for a historic and ambitious free trade agreement (FTA) which further cements a relationship that goes back thousands of years. The two partners also signed a landmark EU-India Security and Defence Partnership. As President von der Leyen underlined, strong partnerships are now more important than ever. This deal consolidates the relationship between the European Union and India, building strength through diversification and creating certainty . In the President's words: “At this moment, strong partnerships have never been more important. And one thing is clear: India and Europe are trusted and reliable strategic partners. We stand together. United in our commitment to help our businesses endure, thrive and grow. To reduce our strategic dependencies. And to realise the incredible potential of our economic relationship.” This deal is the largest trade agreement ever reached by either the European Union or India . President von der Leyen underlined the magnitude of this achievement in her joint statement with President Costa and Indian Prime Minister Modi, declaring: “We did it. We have delivered the mother of all deals. We are creating a market of 2 billion people. This is a tale of two giants – the world's second- and fourth-largest economies. Two giants who choose partnership in a true win-win fashion. A strong message that cooperation is the best answer to global challenges.” Today, Europe exports ten times more agri-food products to China than it does to India. This deal will reduce tariffs and administrative burdens , making trading easier, cheaper and faster . The trade deal will reduce tariffs by up to €4 billion annually for exporters of all sizes, with tariffs to be eliminated or reduced on over 90% of EU goods exports. In turn, EU exports to India are expected to double. As an example, Indian tariffs on wines will be cut from 150% to 75% at entry into force and eventually to levels as low as 20%, and tariffs on olive oil will go down from 45% to 0% over five years. The agreement is carved out with the protection of producers and consumers in mind. Indeed, sensitive European agricultural sectors will be fully protected , with products such as beef, chicken meat, rice and sugar being excluded from liberalisation in the agreement. Additionally, all Indian imports will continue to have to respect the EU's strict health and food safety rules . In parallel, the EU and India are also negotiating a separate agreement on Geographical Indications. Moreover, the agreement has a dedicated trade and sustainable development chapter, which enhances environmental protection and addresses climate change , protects workers' rights, supports women's empowerment, provides for a platform for dialogue and cooperation on trade related environmental and climate issues and ensures effective implementation. Addressing the EU-India Business Forum , which featured significant firms from both Europe and India, the President of the Commission also emphasised the shared commitment to help businesses thrive in this new step of the EU-India partnership, calling for businesses to invest across the oceans. She underlined: “Trade connects economies, but investment anchors them. Deeper investment is what truly strengthens our economic relationship. Investment builds long-term partnerships, jobs, and resilience. So, I want our FTA to be a platform not only for more trade, but also for more investment. European companies are ready to invest more in India.” The EU and India also signed a Security and Defence partnership, which will deepen cooperation on maritime security and step up work on countering cyber and hybrid threats. The President of the Commission underlined this other dimension, stating: “Today, the world's two largest economies and democracies launch their first-ever security and defence partnership. This is a landmark departure. And a trust-based platform for cooperation on the strategic issues that matter most. In so doing, we will help to build each other's resilience. Europe and India have a long history of cooperation in the defence industry. Now, we will enhance this teamwork even further.” During their visit to India, President von der Leyen and President Costa attended the celebrations of Republic Day as Chief Guests . The display of EU flags during the parade was a symbol of deepening security ties between the EU and India. More information: Statement by President von der Leyen with President Costa and Indian Prime Minister Modi Speech by President von der Leyen at the EU-India Business Forum Speech by President von der Leyen at the EU-India Summit Banquet Press release: EU and India conclude landmark Free Trade Agreement Factsheet - EU-India Free Trade Agreement: Main benefits Factsheet - EU-India Free Trade Agreement: EU agri-food exports Questions and answers on the EU-India Free Trade Agreement Audiovisual coverage AC/26/253 Related media Visit of Ursula von der Leyen, President of the European Commission, to India
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