The India-EU trade pact is expected to be signed in December 2026, with EU ambassador to India Jean-Eric Paquet saying the agreement and a proposed investment treaty could strengthen supply chain management and resilience.

Key Takeaways

  • Free trade negotiations concluded at a summit in January, and the European Commission proposed signing the agreement on September 11.
  • Negotiations on a separate investment protection agreement remain ongoing.

India-EU trade pact moves toward signing

Paquet’s comments came ahead of a proposed mid-December visit to Brussels by Indian Prime Minister Narendra Modi for the signing. The agreement has not yet been signed.

The ambassador said a schedule of commitments released alongside the commission’s proposal provides details of when taxes and import rates are to be reduced and take effect for India.

Tariff coverage and investment talks

Paquet said 99% of the trade India has with Europe would be rate-free upon the agreement’s entry into force. He said the pact covers sectors including automobiles, although agricultural coverage is narrower than in some other free trade agreements.

The ambassador described the trade pact and the proposed investment protection agreement together as a way to give businesses a longer-term perspective and greater reliability. He said investment negotiations were continuing and expressed hope that they would accelerate.

Paquet also said members of the European Parliament were positive about the free trade agreement, citing a visit to India by a group of lawmakers in March.

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