India-EU FTA to Open Nearly Entire European Market for Indian Exports by 2027: Goyal

India and the European Union are set to sign their long-awaited free trade agreement (FTA) by December this year, with the pact likely to come into force between February and March 2027, commerce and industry minister Piyush Goyal said on Sunday.

Addressing chartered accountants in Mumbai, Goyal said the agreement would provide Indian exporters with significantly improved access to the European market. "Now, with almost zero duty, almost the entire European market will be open for us. The EU's FTA will be signed by December and will be effective by February-March," Goyal said, according to news agency PTI.

The minister also said US trade representative Jamieson Greer will visit India this week for discussions on the proposed India-US trade pact. "The whole world is looking towards India," Goyal said.

Duty-free access for most Indian exports

The proposed India-EU FTA is expected to provide duty-free access to around 93 per cent of Indian exports to the 27-member European bloc. In return, imports of products such as luxury cars and wines from Europe are expected to become cheaper in India.

India and the EU together account for around 25 per cent of global GDP and nearly one-third of global trade, making the agreement one of the most significant trade deals negotiated by New Delhi. The two sides had announced the conclusion of negotiations for the agreement on January 27 this year, with officials describing it as the "mother of all deals".

Momentum builds after G7 discussions

The timeline outlined by Goyal comes days after Prime Minister Narendra Modi met European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the G7 Summit. Von der Leyen had also said the India-EU FTA would be signed by the end of 2026. "Since we have concluded the mother of all trade deals, we have been moving fast to deliver on our commitments. We will sign the Free Trade Agreement by the end of the year," she said.

The leaders also discussed accelerating work on an investment agreement, strengthening security and defence cooperation, and advancing the India-Middle East-Europe Economic Corridor (IMEC). Goyal said that during the G7 Summit, the Canadian Prime Minister expressed a desire to conclude the proposed India-Canada Comprehensive Economic Partnership Agreement (CEPA) within this year. India and Canada held the second round of negotiations for the trade pact in May.