India and the European Union are preparing for their proposed free trade agreement, with discussions in Brussels focusing on customs cooperation, market access and stronger supply chains.
India and the European Union (EU) have stepped up preparations for implementing their proposed Free Trade Agreement (FTA), with senior officials discussing market access, customs procedures and supply chain cooperation in Brussels.
Commerce Secretary Rajesh Agrawal held meetings with senior European Commission representatives to explore ways to strengthen bilateral trade and improve business conditions for companies operating in both markets.
The discussions are part of broader efforts to prepare the agreement for signing and eventual implementation.
During his Brussels visit, Agrawal met several senior European Commission officials, including Ditte Juul Jorgensen, Director-General of the Directorate-General for Trade and Economic Security; Gerassimos Thomas, Director-General of the Directorate-General for Taxation and Customs Union; and Koen Doens, Director-General of the Directorate-General for International Partnerships.
The meetings focused on facilitating trade between India and the EU, strengthening supply chain resilience and improving cooperation between customs authorities.
Both sides also discussed the use of digital trade procedures to simplify business transactions and reduce costs for companies involved in cross-border commerce.
The discussions follow the conclusion of FTA negotiations at the 16th India-EU Summit on January 27, 2026. The proposed agreement is currently undergoing legal scrutiny and verification. The two sides are targeting its signing in mid-December 2026.
After signing, the agreement will require the necessary ratification processes before entering into force. Full implementation is targeted for mid-2027.
The proposed timeline reflects the efforts of both partners to move from negotiations towards a formal trade arrangement.
The proposed agreement is expected to provide significant tariff benefits to businesses on both sides.
Under the deal, the EU is expected to eliminate tariffs on more than 99% of Indian exports. This could improve the competitiveness of Indian products in European markets, particularly in labour-intensive industries.
Key sectors expected to benefit include:
Textiles: Better access to European buyers could support Indian textile exporters.
Leather: Reduced tariff barriers may strengthen export opportunities for leather products.
Jewellery: Improved market access could benefit India's jewellery and related industries.
India, meanwhile, is expected to lower duties on more than 96% of European goods.
The proposed arrangement also includes a phased reduction in automobile import tariffs to 10%, subject to an annual quota of 250,000 vehicles. This provision could create additional opportunities for European automobile manufacturers in the Indian market.
During his visit, Agrawal also met representatives of the Antwerp diamond industry.
The discussions covered certification standards, traceability and responsible sourcing across the global diamond value chain. Both sides explored opportunities to strengthen cooperation and improve transparency in the industry.
The engagement is significant for India, which has an established presence in diamond processing and jewellery exports. Greater cooperation could help businesses address evolving international sourcing and certification requirements.
Agrawal also participated in a roundtable organised by BusinessEurope, where he highlighted India's economic growth and expanding investment opportunities.
He encouraged European companies to participate in India's growing value chains and explore business opportunities across different sectors.
The discussions also addressed development cooperation, sustainable development, clean energy and green technologies.
These areas are expected to remain important components of India-EU economic engagement, particularly as both partners pursue more resilient and sustainable growth strategies.
Trade between India and the European Union has become an important part of their economic relationship.
In FY25, bilateral merchandise trade stood at approximately ₹11.5 lakh crore (US$136.54 billion). India's exports to the EU accounted for around ₹6.4 lakh crore (US$75.85 billion) during the period.
The scale of existing trade highlights the potential for further expansion through lower tariffs, improved customs procedures and stronger business cooperation.
Conclusion
India and the EU are moving towards a new phase of economic cooperation as preparations for their proposed FTA advance. With tariff reductions, improved market access and stronger supply chain partnerships, the agreement could create fresh opportunities for businesses and strengthen bilateral trade.