(CLO) India and the European Union are expected to formally announce a free trade agreement today (January 27) after nearly two decades of negotiations.
The formal announcement of the agreement will take place today in New Delhi during a meeting between European Commission President Ursula von der Leyen and European Council President Antonio Costa with Indian Prime Minister Narendra Modi.
“The negotiations are being formally concluded, and both sides are ready to announce a successful outcome,” Indian Commerce Minister Rajesh Agrawal said on January 26, calling the agreement “balanced and future-oriented.”
Indian officials have called the agreement “the most important deal in history,” emphasizing its scale and strategic importance as New Delhi and Brussels seek to diversify their trade relations amid rising global protectionism.
The agreement will pave the way for freer trade in goods between India and the 27-nation European Union, which accounts for about a quarter of global GDP and represents a combined market of approximately two billion consumers.
According to EU data, bilateral trade between the two sides is expected to reach approximately 139 billion dollars in 2024, up nearly 90% from a decade ago, along with 69 billion dollars in services.
According to Indian data, total bilateral trade reached 136.5 billion dollars in the fiscal year ending March 2025.
Under the agreement, India is expected to promote exports of key European goods such as cars and wine, and provide better market access for Indian products, including textiles and pharmaceuticals.
In recent months, negotiations have focused primarily on the automotive and steel industries, two of the most contentious sectors.
EU leaders have stated that Europe and India will cooperate to shape a new global order.
