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The European Union and India have concluded negotiations on a comprehensive Free Trade Agreement (FTA) after nearly two decades of talks. The pact will undergo legal scrubbing and later ratification before entering into force. This page aims to provide answers to common questions related to the FTA, with a focus on Swedish companies operating in India or considering future business opportunities and will be updated regularly as developments occur.
Readers may also consult the European Commission’s official Q&A and explanatory materials for further information on the EU-India FTA, available at: Questions and answers on the EU-India Free Trade Agreement
1. What is the EU–India Free Trade Agreement and what is its overall objective?
On the 27th of January 2026 in New Delhi, EU and India announced the conclusion of negotiations on a Free Trade Agreement (FTA), following negotiations that began in 2007. Once it enters into force, the agreement will constitute one of the world’s largest free trade areas, covering approximately 1.9 billion people (around a quarter of the global population), a quarter of global GDP and one third of global trade flows— making it the EU’s largest trade agreement to date.
The overall objective of the EU–India Free Trade Agreement is to foster enhanced, mutually beneficial trade and investment relations between the EU and India.
In practical terms, the agreement is expected to over time reduce tariffs on more than 90% of goods traded between the EU and India, improve market access, reduce technical barriers, enhance regulatory transparency and predictability.
Overall, the agreement has the potential to reduce trade costs, increase transparency, and improve the trade and investment climate for Swedish companies in and with India.
2. When is the EU-India Free Trade Agreement expected to enter into force?
The announced agreement between the EU and India marks the conclusion of negotiations on the substantive content of the Free Trade Agreement.
The EU–India FTA will enter into force only after the completion of the respective internal procedures on both sides. These include legal scrubbing, formal signing, translation into all EU official languages, and ratification in accordance with each party’s institutional and constitutional requirements.
From the Indian side, Commerce Secretary Rajesh Agrawal, stated on 26 January that the FTA text will undergo a legal scrubbing process over the next 5-6 months before the formal signing. The agreement is expected to enter into force sometime next year.
3. How will the agreement affect tariffs on EU exports to India?
This deal is expected to double EU goods exports to India by 2032 by eliminating or reducing tariffs in value of 96.6% of EU goods exports to India. Overall, the tariff reductions are estimated to save around €4 billion per year in duties on European products. Examples of major interest for Swedish industry include car tariffs being cut from 110% to as low as 10%, car-part duties being fully eliminated within 5–10 years however electric vehicles are excluded for the first 5 years and tariffs of up to 44% on machinery, 22% on chemicals and 11% on pharmaceuticals largely removed.
4. Will tariff reductions and market access improvements apply immediately or be phased in over time?
Under the EU-India FTA, some tariff reductions and market access improvements are expected to apply immediately when the agreement enters into force, while others will be phased in gradually over several years.
The exact timing will depend on the final agreement and will be specified in the FTA schedules and annexes.
5. What does the agreement mean for small and medium-sized enterprises (SMEs)?
The EU–India Free Trade Agreement is expected to be of particular benefit to small and medium-sized enterprises (SMEs), which are often disproportionately affected by tariffs, administrative burdens, and regulatory complexity when operating internationally. By reducing tariffs on a large share of EU exports to India and improving market access, the agreement aims to lower trade costs and make it easier for SMEs to enter or expand their presence in the Indian market.
There will also be a dedicated chapter in the agreement that will further help SMEs take full advantage of the new export opportunities. For example, this chapter will put in place dedicated contact points on both sides to provide SMEs with relevant information on the FTA and help them with any specific issue they would face when trying to use the FTA's provisions.
Beyond tariff reductions, the agreement seeks to address non-tariff barriers by promoting greater regulatory transparency, more predictable rules, and simplified procedures for trade in goods and services.
6. How can Swedish companies prepare for the agreement and where can they get support and guidance?
Swedish companies should begin preparing by assessing how the agreement may affect their trade flows, supply chains, and market access in India, as well as by identifying potential opportunities for exports, investment, or local establishment.
Business Sweden is available to support Swedish companies throughout this process. Business Sweden’s teams can provide guidance on how the agreement may impact individual business models, as well as practical support related to market entry and trade procedures. By combining on-the-ground expertise in India with policy and trade competence in Sweden, Business Sweden helps companies navigate both strategic and operational aspects of preparing for the agreement.
Business Sweden’s India team (ask.india@business-sweden.se) can assist with questions related to business opportunities, market access, partner identification, and establishment in India.
Business Sweden’s Stockholm team (exportregler@business-sweden.se) provides advice on trade procedures, customs matters, tariffs, and export regulations.
7. What is the role of the Embassy of Sweden in India?
The Embassy of Sweden in India will monitor regulatory developments, trade barriers, collect business feedback, engage with government authorities and report to Swedish authorities to improve market access. The Embassy will also work closely with the Delegation of the European Union in India to raise issues reported by Swedish companies.
This work will be carried out in close coordination with Team Sweden, bringing together the Embassy, The Consulate-General in Mumbai, Business Sweden, Swedish Chamber of Commerce in India, National Board of Trade and other relevant Swedish actors to provide, coherent, end-to-end support to Swedish companies, from policy guidance and government interaction to market entry and expansion in India.
You can contact us at ambassaden.new-delhi@gov.se
8. What is the role of the different team members of Team Sweden in India?
Business Sweden: Business Sweden helps Swedish companies grow global sales and supports international companies in investing and expanding in Sweden. Its mission is to strengthen Swedish exports, promote inward and outward investment, and enhance international business cooperation. Business Sweden can support Swedish companies with advisory on how the EU–India Free Trade Agreement may affect business opportunities in and with India and throughout their entire India journey — from market analysis and strategic advisory services, to partner identification, establishment, exports and sourcing.
Business Sweden’s India team (ask.india@business-sweden.se) can assist with questions related to business opportunities, market access, partner identification, and establishment in India.
Business Sweden’s Stockholm team (exportregler@business-sweden.se) provides advice on trade procedures, customs matters, tariffs, and export regulations.
Swedish Chambers of Commerce India: The Swedish Chamber of Commerce India (SCCI) is an independent, non-profit organization, and the hub for Swedish companies in the country. SCCI supports Swedish companies with the practical implementation of the FTA on the ground. We engage with state and central authorities, clarify operational implications for businesses, and enable cross‑learning between companies by fostering dialogue, interaction, and the exchange of best practices.
You can contact them on contact@swedishchamber.in
National Board of Trade Sweden: The National Board of Trade is a Swedish government agency for international trade, the EU internal market and trade policy. Its mission is to facilitate free and open trade with transparent rules as well as free movement in the EU internal market. The National Board of Trade can be contacted for questions regarding the content of the Free Trade Agreement. registrator@kommerskollegium.se
Sweden-India Business Council: The role of Sweden-India Business Council is to ensure that decision-makers in Sweden has the right information to make the smart decision. For the purpose of the Free Trade Agreement, they will:
Sweden-India Business Council can be reached by e-mail at info@sibc.se
9. What is the role of EU-Delegation in India?
The EU-Delegation’s Trade & Economic Affairs Section oversees the EU’s trade policy in India at multilateral (WTO) and bilateral levels, including EU–India FTA negotiations and market‑access issues, in coordination with EU Member States. It covers a wide range of trade and economic sectors and maintains regular engagement with Indian government bodies and civil society. A core responsibility is monitoring and analysing India’s trade and economic developments to support decision‑making at EU Headquarters in Brussels. Delegation of the European Union to India and Bhutan | EEAS
For official EU-level information, readers may consult the EU Commission’s Q&A available at: Questions and answers on the EU-India Free Trade Agreement
10. What is the role of Invest India?
Invest India is the Government of India’s national agency that helps both foreign and Indian investors. It guides them through every step—from exploring opportunities to setting up and expanding their business. It also connects investors with government and industry to make projects easier and support India’s growth as an investment destination. Invest India: Your Guide to Investment Opportunities.
For any queries, you can contact them at contact@investindia.org.in
11. What is the role of Confederation of Swedish Enterprise?
The Confederation of Swedish Enterprise is Sweden's largest and most influential business organization. It represents the voice of 60,000 companies and 49 industry and employer organizations in all business sectors and employing nearly 2 million employees.
As a bastion for free trade and a rules-based world order, the Confederation of Swedish Enterprise advocates that companies benefit from easy access to as many global markets as possible. Free trade without unnecessary obstacles and with clear and predictable rules is good for Swedish exporters, importers and investors.
The EU-India FTA has been an important part of this work. Since the negotiations were re-launched in 2022, the Confederation has published and provided evidence-based analyses and reports to inform the discussions on the FTA. Working with decision makers from Delhi and Mumbai to Brussels and Stockholm, the Confederation has aimed for an ambitious, win-win FTA using its a deep expertise and understanding of cultural and economic sensitivities in India and the Member States of the European Union.
Going forward the Confederation aims to deepen the knowledge about the Indian market and the provisions of the FTA amongst Swedish industry. It will work towards swift ratification and full implementation of the trade deal and discourage regulations that counteract the positive measures agreed in the FTA.
Confederation of Swedish Enterprise