The EU-India Free Trade Agreement concluded on January 27, 2026, eliminates tariffs on 90% of traded goods between the two regions. The agreement represents a transformational expansion of trade opportunities for Indian exporters, particularly in textiles, pharmaceuticals, and electronics sectors.
## Key Highlights
**Duty Elimination:** 90% of traded goods
**Tariff Reductions:**
– Textiles: 9-12% → 0%
– Pharmaceuticals: 11% → near-zero
– Electronics: 14% → 0% (99.6% of export lines)
**Significance:** “Mother of all deals” – transformational impact on bilateral trade
## Impact
The FTA delivers structural export boost for Indian manufacturers. Supply chain integration with Europe deepens, enabling Indian companies to become integrated parts of European manufacturing ecosystems. Premium product development opportunities emerge as tariff barriers fall. Regional manufacturing clusters strengthen as European demand shifts toward Indian suppliers.
This agreement is expected to significantly increase bilateral trade volumes and create new opportunities for Indian companies in European markets across multiple sectors.
**Source:** Ministry of Commerce, European Commission
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