It took almost a decade of hiatus, but the "mother of all deals" is moving. The European Commission on Friday forwarded to European Council its proposals for signing and conclusion of India-EU FTA, crucial step to conclude pact by year-end.
India and EU concluded negotiations for FTA - described by both sides as "mother of all deals" - in January, after resuming talks in 2021 following hiatus of almost a decade. Prime Minister Narendra Modi is expected to visit Brussels at end of year for formal signing.
"If authorised by the Council, this will be largest trade agreement ever concluded by both EU and India," European Commission said. Following signing, FTA will have to be cleared by European Parliament for entry into force. Indian authorities are carrying out their own internal ratification procedures.
Once FTA is adopted and enters into force, which is expected early in 2027, agreement will improve market access, reduce tariffs, tackle unnecessary barriers to trade, and provide predictable rules for trade and investment between EU and India.
European Commission, which is EU's main executive body that proposes legislation and upholds treaties, said proposal is key step to ensure consumers and businesses can reap benefits as soon as possible. The move is also in line with fast-track procedure laid out by EU commissioner for trade and economic security, Maroš Šefčovič, that aims to speed up implementation of FTAs amid "geopolitical uncertainty and growing pressure on global trading system."
The European Council defines EU's overall political direction, and its members include heads of state or government of 27 EU member states, European Council President and European Commission President. European Commission said FTA also reflects EU's commitment to strengthen economic ties with key partners in Indo-Pacific.
"Timing matters, which is why we are now following through by submitting our proposals to Council for signature and conclusion in record time. This agreement brings together two of world's largest economies - a market of two billion people and around quarter of global GDP," Šefčovič said.
India-EU trade in goods and services currently worth more than €180 billion a year, FTA will eliminate or reduce tariffs on 96% of EU goods exports to India. Tariff reductions will save around €4 billion a year.
India is EU's 9th largest trading partner for goods globally, 6th for trade in services. Bilateral trade in goods was worth €118 billion in 2025. India's main exports to EU include machinery, appliances, chemicals, textiles, metals and petroleum. EU exports to India dominated by industrial products, transport equipment, chemicals. Services amounted to €67 billion in 2025, EU exports €29.2 billion, imports €37.8 billion. In 2024, EU FDI stock in India €132.8 billion, India's in EU €13.7 billion.
Majority of trade will be liberalised at entry into force while transition periods of 3,5,7 years for certain goods, or partially liberalised tariff lines. FTA also aims to foster cooperation and help remove technical barriers, create more transparent, predictable, cost-effective environment. In world of US tariffs, Brussels and Delhi are hedging together.