India-EU FTA will open almost entire European market to Indian exports by 2027: Goyal
India and the European Union are set to sign the much-awaited free trade agreement by December this year, and the agreement is likely to come into force between February and March 2027, Commerce and Industry Minister Piyush Goyal said on Sunday.Addressing the chartered accountants in Mumbai, Goyal said the agreement will provide Indian exporters with significantly better access to the European market.“Now, with almost no tariffs, almost the entire European market will be open to us. The EU FTA will be signed by December and will be effective by February-March,” Goyal was quoted as saying by news agency PTI.The minister also said that US Trade Representative Jamieson Greer will visit India this week for discussions on the proposed Indo-US trade agreement.“The whole world is looking towards India,” Goyal said.
Access without customs fees for most Indian exports
The proposed India-EU free trade agreement is expected to provide duty-free access to about 93 per cent of Indian exports to the 27-member European bloc.In contrast, imports of products such as luxury cars and wine from Europe are expected to become cheaper in India.India and the EU together account for about 25% of global GDP and nearly a third of global trade, making the agreement one of the most important trade deals negotiated by New Delhi.
The two sides announced the conclusion of negotiations on the agreement on January 27, and officials described it as “the mother of all deals.”
Momentum is building after the G7 discussions
The timetable set by Goyal comes days after Prime Minister Narendra Modi met with European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the G7 summit.Von der Leyen also said that a free trade agreement between India and the EU will be signed by the end of 2026.“Since we concluded the mother of all trade deals, we have been moving quickly to fulfill our commitments. We will sign the free trade agreement by the end of the year,” she said.The leaders also discussed accelerating work on the investment agreement, enhancing security and defense cooperation, and strengthening the India-Middle East-Europe Economic Corridor (IMEC).Goyal said that during the G7 summit, the Canadian Prime Minister expressed his desire to conclude the proposed India-Canada Comprehensive Economic Partnership Agreement (CEPA) within this year.India and Canada held the second round of negotiations on the trade agreement in May.
