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Embassy of Sweden New Delhi, India

Local time 4:11 AM

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.

Last updated 05 Feb 2026, 4.19 PM