After 13 years of intermittent negotiations, India and the European Union formally signed a Comprehensive Trade and Investment Agreement (CTIA) at a ceremony in Brussels attended by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen.
Key Provisions
The agreement eliminates tariffs on over 90 percent of goods traded between the two sides over the next seven years. Indian IT services firms gain improved access to EU markets, while European automotive and machinery exporters benefit from reduced Indian duties.
- Tariff elimination on 90% of traded goods over 7 years
- Mutual recognition of professional qualifications in IT and engineering
- Digital trade chapter covering data flows and e-commerce
- Sustainable development provisions linked to labor and environmental standards
What It Means
Bilateral trade between India and the EU stood at approximately $120 billion in 2025. Economists project the FTA could push this to $160 billion by 2031, making the EU India's largest trading partner ahead of the United States.
"This agreement reflects the maturity of a partnership built on shared democratic values and mutual economic interest," Modi said at the signing ceremony.
The deal still needs ratification by the Indian Parliament and the European Parliament, a process expected to take six to nine months. Trade bodies on both sides have broadly welcomed the agreement, though Indian dairy farmers and European wine producers have expressed reservations about specific provisions.
