The economic partnership between India and the European Union has reached a critical juncture with the European Commission formally submitting its proposal to the European Council to sign and conclude their landmark Free Trade Agreement (FTA). Hailed as the “mother of all deals,” authorization by the Council will pave the way for what will become the largest trade agreement ever concluded by both entities.
Key Dimensions of the Agreement
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Tariff Elimination and Savings: The pact is structured to eliminate or reduce tariffs on 96% of EU goods exports to India, delivering an estimated savings of around 4 billion euros annually in duties for European producers.
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Massive Economic Footprint: The agreement bridges two of the world’s premier economic blocs, encompassing a combined market of 2 billion people and approximately one-quarter of global GDP. Current bilateral trade in goods and services already exceeds 180 billion euros annually, supporting nearly 800,000 jobs within the EU.
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Strategic and Regulatory Integration: Beyond tariff cuts, the framework aims to improve market access, systematically address unnecessary trade barriers, and establish predictable, transparent rules for cross-border trade and investment.
Next Steps in the Ratification Process
Following the Commission’s submission, the proposal now rests with the European Council for formal review and signature. Once greenlit by the Council, the final text will require approval from the European Parliament before it can officially enter into force and take effect across member states.
