Commerce and Industry Minister Piyush Goyal on Sunday (Jun 22) announced that India and the European Union are set to sign the Free Trade Agreement by December this year. The pact is expected to come into effect by February-March 2027. The FTA is expected to strengthen trade, investment, and economic cooperation between India and the EU. Under the agreement, about 93 per cent of Indian exports will get duty-free access to the European market, while imports of EU goods like wines and luxury cars are expected to become cheaper.<h2>Key provisions of India-EU FTA</h2>Under the proposed India-EU FTA, majority of Indian exports entering European markets will be granted duty-free access. According to the Indian government, 99.5 per cent of the value of Indian exports would enjoy tariff-free access in the EU.The agreement is also expected to open 144 European service subsectors to Indian companies, particularly in information technology, consulting, and professional services. India would open 102 service subsectors to European investors.Other provisions include tariff reductions on goods, investment protection measures, regulatory cooperation, transparency in government procurement, and commitments related to labour, environmental standards, and sustainable supply chains.Also read | <a href="https://www.wionews.com/india-news/pm-modi-in-europe-what-are-india-s-objectives-at-the-g7-summit-1781594601788">PM Modi in Europe: What are India’s objectives at the G7 Summit?</a><h2>Indian industries are poised to gain the most</h2>Duty-free access of Indian goods in European market can boost several industries, especially textile and apparel, with an increased export of garments, cotton textiles, home furnishings, and technical textiles. Engineering Goods like machinery, auto components, electrical equipment, and industrial products are also expected to rise in exports.Apart from these, pharmaceuticals, chemicals and speciality chemicals are also expected to benefit from FTA. Reduced duties could also boost exports of diamonds, gemstones, and value-added jewellery products. Other sectors that may benefit from the landmark deal include leather, footwear, handicrafts, agriculture, food processing, and IT-enabled services<h2>European Union’s key demands</h2>During negotiations, the European Union has sought to secure lower Indian tariffs on automobiles, auto components, wines, and spirits. The EU is also seeking stronger intellectual property protections, broader access for its services sector, and enhanced investment safeguards. Sustainability commitments, labour standards, and climate-related regulations remain important priorities for European negotiators.Also read | <a href="https://www.wionews.com/world/the-politics-of-perception-decoding-the-g7-s-most-viral-moments-1781782259617">The politics of perception: Decoding G7 Summit’s most viral moments</a><h2>How duty-free access could transform Indian exports</h2>Duty-free access to European market is expected to provide substantial advantages for Indian exporters. By removing tariffs that currently range from 4 per cent to more than 12 per cent in many sectors, Indian products would become more competitive in Europe. Labour-intensive industries could witness higher export orders and increased employment generation. The agreement may also encourage foreign investment as multinational companies look to use India as a manufacturing base for exports to Europe. Small and medium enterprises are expected to benefit from reduced trade costs and improved integration into global supply chains.<h2>How the EU deal compares with India’s recent FTAs</h2>Compared with India’s recent trade agreements with UAE, Australia, and the UK, the India-EU FTA stands out because of its scale and strategic importance. Covering markets worth nearly $25 trillion and around two billion people, it is often described as the most ambitious trade agreement India has negotiated. While similar to other FTAs in offering extensive tariff liberalisation and professional mobility provisions, it also includes unique sustainability commitments and faces challenges such as the EU’s Carbon Border Adjustment Mechanism. &nbsp;

India and the EU are set to sign a landmark FTA by December 2026, granting duty-free access to most Indian exports, boosting key sectors, attracting investment, and deepening economic ties.

Commerce and Industry Minister Piyush Goyal on Sunday (Jun 22) announced that India and the European Union are set to sign the Free Trade Agreement by December this year. The pact is expected to come into effect by February-March 2027. The FTA is expected to strengthen trade, investment, and economic cooperation between India and the EU. Under the agreement, about 93 per cent of Indian exports will get duty-free access to the European market, while imports of EU goods like wines and luxury cars are expected to become cheaper. Key provisions of India-EU FTA Under the proposed India-EU FTA, majority of Indian exports entering European markets will be granted duty-free access. According to the Indian government, 99.5 per cent of the value of Indian exports would enjoy tariff-free access in the EU. The agreement is also expected to open 144 European service subsectors to Indian companies, particularly in information technology, consulting, and professional services. India would open 102 service subsectors to European investors. Other provisions include tariff reductions on goods, investment protection measures, regulatory cooperation, transparency in government procurement, and commitments related to labour, environmental standards, and sustainable supply chains. Also read | PM Modi in Europe: What are India’s objectives at the G7 Summit? Indian industries are poised to gain the most Duty-free access of Indian goods in European market can boost several industries, especially textile and apparel, with an increased export of garments, cotton textiles, home furnishings, and technical textiles. Engineering Goods like machinery, auto components, electrical equipment, and industrial products are also expected to rise in exports. Apart from these, pharmaceuticals, chemicals and speciality chemicals are also expected to benefit from FTA. Reduced duties could also boost exports of diamonds, gemstones, and value-added jewellery products. Other sectors that may benefit from the landmark deal include leather, footwear, handicrafts, agriculture, food processing, and IT-enabled services European Union’s key demands During negotiations, the European Union has sought to secure lower Indian tariffs on automobiles, auto components, wines, and spirits. The EU is also seeking stronger intellectual property protections, broader access for its services sector, and enhanced investment safeguards. Sustainability commitments, labour standards, and climate-related regulations remain important priorities for European negotiators. Also read | The politics of perception: Decoding G7 Summit’s most viral moments How duty-free access could transform Indian exports Duty-free access to European market is expected to provide substantial advantages for Indian exporters. By removing tariffs that currently range from 4 per cent to more than 12 per cent in many sectors, Indian products would become more competitive in Europe. Labour-intensive industries could witness higher export orders and increased employment generation. The agreement may also encourage foreign investment as multinational companies look to use India as a manufacturing base for exports to Europe. Small and medium enterprises are expected to benefit from reduced trade costs and improved integration into global supply chains. How the EU deal compares with India’s recent FTAs Compared with India’s recent trade agreements with UAE, Australia, and the UK, the India-EU FTA stands out because of its scale and strategic importance. Covering markets worth nearly $25 trillion and around two billion people, it is often described as the most ambitious trade agreement India has negotiated. While similar to other FTAs in offering extensive tariff liberalisation and professional mobility provisions, it also includes unique sustainability commitments and faces challenges such as the EU’s Carbon Border Adjustment Mechanism.

India and the EU are set to sign a landmark FTA by December 2026, granting duty-free access to most Indian exports, boosting key sectors, attracting investment, and deepening economic ties.

India-EU Free Trade Agreement: What landmark deal means for India

Swedish Prime Minister Ulf Kristersson has described recent talks with Indian Prime Minister Narendra Modi as a continuation of efforts to strengthen economic and strategic partnerships, with progress on a long-awaited EU-India free trade agreement high on the agenda. In an interview with WION's Sidhant Sibal during the India-Nordic Summit, Kristersson highlighted the importance of bilateral discussions that built on PM Modi's recent visit to Sweden.&nbsp;Kristersson said, "we discussed a lot about the free trade agreement between the European Union and India, and since Sweden is a very big exporter, that means a lot to us today", adding ,"We had a broader discussion also on diplomacy and the role of UN and geopolitics. They complemented each other pretty well."&nbsp;Also read: <a href="https://www.wionews.com/world/-natural-partners-pm-modi-pushes-for-skill-development-at-india-nordic-summit-1779195589970">‘Natural Partners’: PM Modi Pushes for Skill Development at India-Nordic Summit</a>&nbsp;Trade remains a cornerstone of the relationship. Sweden, a major exporter of engineering goods, vehicles and high-tech products, sees significant potential in deeper access to the Indian market. Negotiations for the EU-India FTA have been ongoing for years, and both sides are keen to resolve outstanding issues around tariffs, regulations and market access. Defence cooperation also featured prominently. India's Prime Minister received a notable welcome involving Swedish fighter jets, showcasing growing military-to-military ties between the two democracies.&nbsp;Also read: <a href="https://www.wionews.com/india-news/media-house-deletes-story-after-pm-modi-rare-fact-checks-foreign-travel-tax-report-totally-false-cnbc-tv18-shut-down-global-travel-panic-1778899536032">Media house forced to delete story after PM Modi fact-checks misleading report on X: 'Totally false'</a>&nbsp;Asked about the welcome, Sweden PM said, “we produce our own fighter jets, we are eager to show them, and since they are extremely good at, meeting incoming aircraft. I think that was a good sign.” Sweden's Gripen fighter jets, manufactured by Saab, are see as among the world's most advanced multi-role aircraft. The display was seen as a subtle signal of Sweden's defence export ambitions in the Indo-Pacific region. When asked if the demonstrations had impressed the Indian side, the Swedish leader answered cautiously: "We always show our capabilities in a friendly manner."&nbsp;India has been diversifying its defence suppliers as it seeks to modernise its armed forces and reduce reliance on any single source. While no immediate deals were announced, defence was among the areas of conversation. &nbsp;

Swedish PM Ulf Kristersson praised the India-EU free trade agreement during PM Modi's visit, announcing a strategic pact to double bilateral trade within five years.

Swedish Prime Minister Ulf Kristersson has described recent talks with Indian Prime Minister Narendra Modi as a continuation of efforts to strengthen economic and strategic partnerships, with progress on a long-awaited EU-India free trade agreement high on the agenda. In an interview with WION's Sidhant Sibal during the India-Nordic Summit, Kristersson highlighted the importance of bilateral discussions that built on PM Modi's recent visit to Sweden. Kristersson said, "we discussed a lot about the free trade agreement between the European Union and India, and since Sweden is a very big exporter, that means a lot to us today", adding ,"We had a broader discussion also on diplomacy and the role of UN and geopolitics. They complemented each other pretty well." Also read: ‘Natural Partners’: PM Modi Pushes for Skill Development at India-Nordic Summit Trade remains a cornerstone of the relationship. Sweden, a major exporter of engineering goods, vehicles and high-tech products, sees significant potential in deeper access to the Indian market. Negotiations for the EU-India FTA have been ongoing for years, and both sides are keen to resolve outstanding issues around tariffs, regulations and market access. Defence cooperation also featured prominently. India's Prime Minister received a notable welcome involving Swedish fighter jets, showcasing growing military-to-military ties between the two democracies. Also read: Media house forced to delete story after PM Modi fact-checks misleading report on X: 'Totally false' Asked about the welcome, Sweden PM said, “we produce our own fighter jets, we are eager to show them, and since they are extremely good at, meeting incoming aircraft. I think that was a good sign.” Sweden's Gripen fighter jets, manufactured by Saab, are see as among the world's most advanced multi-role aircraft. The display was seen as a subtle signal of Sweden's defence export ambitions in the Indo-Pacific region. When asked if the demonstrations had impressed the Indian side, the Swedish leader answered cautiously: "We always show our capabilities in a friendly manner." India has been diversifying its defence suppliers as it seeks to modernise its armed forces and reduce reliance on any single source. While no immediate deals were announced, defence was among the areas of conversation.

Swedish PM Ulf Kristersson praised the India-EU free trade agreement during PM Modi's visit, announcing a strategic pact to double bilateral trade within five years.

Swedish PM Kristersson hails progress on India-EU free trade agreement

New Delhi: Portugal has thrown its weight behind the long-awaited India-EU Free Trade Agreement, with a key minister declaring the pact is now in its “last mile” and on track to take effect on 1 January 2027.&nbsp;João Rui Ferreira, Portugal’s Secretary of State for Economy, told WION’s Sidhant Sibal that Lisbon had backed the agreement “since day one” and remained a strong supporter. “We believe we are in the last mile now,” he said. “We are confident… it will be in place on the first of January 2027.”&nbsp;The presence in India of the Presidents of the European Commission and Council, alongside the Trade Commissioner, demonstrated the strength of European commitment, Mr Ferreira added. “In a complex world, in uncertainty [at this] moment, agreements like this will give companies, businesses a new opportunity,” he said, pointing to India’s rapid growth as the world’s fourth-largest economy, on course to become the third.&nbsp;With its young population and ambitious infrastructure and manufacturing plans under “Make in India” and the 2047 vision, India offers major scope for collaboration, he argued. Portuguese firms could bring know-how in decarbonised industry, clean energy technologies and sustainable manufacturing. “I think we can bring… complementarity to that ambition,” Mr Ferreira said.&nbsp;Portuguese companies eye infrastructure and tech partnerships. The minister drew a clear distinction between infrastructure and industrial opportunities. Portuguese companies were keen to participate as contractors in energy, electrical systems, waste management and broader infrastructure projects. Industrial firms and a growing cohort of startups showcase the potential in advanced technologies and joint ventures.&nbsp;“For Portuguese companies to succeed… local partnerships, local joint ventures [are key],” he stressed. “India is a continent, so the market is huge. Companies need to focus on sectors, or regions or cities.”&nbsp;Mr Ferreira said that the recent reopening of Portugal’s trade and investment agency office in New Delhi is a sign of long-term commitment. “This is just the beginning of a journey,” he said.&nbsp;&nbsp;Indian companies have been invited to invest in Portugal across several high-growth sectors. Mr Ferreira highlighted space and defence, including satellites, aeronautics and drones; pharmaceuticals and life sciences; advanced manufacturing backed by strong STEM education; battery value chains from lithium to production; data centres; and digital technologies.&nbsp;Energy stood out as a particular strength. “Eighty per cent of our energy comes from renewable sources at a very competitive price,” he said, describing Portugal as well-positioned for industrial development. Portugal is also open to skilled Indian workers. “Qualified, skilled workers will always have an opportunity in Portugal,” the minister said, citing programmes with companies and sector associations, supported by the embassy and consulate in India.&nbsp;&nbsp;Mr Ferreira acknowledged the deep historical and cultural ties between the two nations but insisted the focus was now firmly on the future. “We are proud of our history, but we are looking to the future… The numbers are still far from the potential we have and that’s what we want to change,” he said.

Portuguese companies are eyeing infrastructure and tech partnerships and are keen to participate as contractors in energy, electrical systems, waste management and broader infrastructure projects, said Portugal’s Secretary of State for Economy João Rui Ferreira.

New Delhi: Portugal has thrown its weight behind the long-awaited India-EU Free Trade Agreement, with a key minister declaring the pact is now in its “last mile” and on track to take effect on 1 January 2027. João Rui Ferreira, Portugal’s Secretary of State for Economy, told WION’s Sidhant Sibal that Lisbon had backed the agreement “since day one” and remained a strong supporter. “We believe we are in the last mile now,” he said. “We are confident… it will be in place on the first of January 2027.” The presence in India of the Presidents of the European Commission and Council, alongside the Trade Commissioner, demonstrated the strength of European commitment, Mr Ferreira added. “In a complex world, in uncertainty [at this] moment, agreements like this will give companies, businesses a new opportunity,” he said, pointing to India’s rapid growth as the world’s fourth-largest economy, on course to become the third. With its young population and ambitious infrastructure and manufacturing plans under “Make in India” and the 2047 vision, India offers major scope for collaboration, he argued. Portuguese firms could bring know-how in decarbonised industry, clean energy technologies and sustainable manufacturing. “I think we can bring… complementarity to that ambition,” Mr Ferreira said. Portuguese companies eye infrastructure and tech partnerships. The minister drew a clear distinction between infrastructure and industrial opportunities. Portuguese companies were keen to participate as contractors in energy, electrical systems, waste management and broader infrastructure projects. Industrial firms and a growing cohort of startups showcase the potential in advanced technologies and joint ventures. “For Portuguese companies to succeed… local partnerships, local joint ventures [are key],” he stressed. “India is a continent, so the market is huge. Companies need to focus on sectors, or regions or cities.” Mr Ferreira said that the recent reopening of Portugal’s trade and investment agency office in New Delhi is a sign of long-term commitment. “This is just the beginning of a journey,” he said. Indian companies have been invited to invest in Portugal across several high-growth sectors. Mr Ferreira highlighted space and defence, including satellites, aeronautics and drones; pharmaceuticals and life sciences; advanced manufacturing backed by strong STEM education; battery value chains from lithium to production; data centres; and digital technologies. Energy stood out as a particular strength. “Eighty per cent of our energy comes from renewable sources at a very competitive price,” he said, describing Portugal as well-positioned for industrial development. Portugal is also open to skilled Indian workers. “Qualified, skilled workers will always have an opportunity in Portugal,” the minister said, citing programmes with companies and sector associations, supported by the embassy and consulate in India. Mr Ferreira acknowledged the deep historical and cultural ties between the two nations but insisted the focus was now firmly on the future. “We are proud of our history, but we are looking to the future… The numbers are still far from the potential we have and that’s what we want to change,” he said.

Portuguese companies are eyeing infrastructure and tech partnerships and are keen to participate as contractors in energy, electrical systems, waste management and broader infrastructure projects, said Portugal’s Secretary of State for Economy João Rui Ferreira.

Portugal confident India-EU trade deal will enter force in 2027; sees investments growing

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India-EU Free Trade Agreement: What landmark deal means for India

Swedish PM Kristersson hails progress on India-EU free trade agreement

Portugal confident India-EU trade deal will come into force in 2027