India and EU Set to Unveil Historic Trade Agreement

Tue Jan 27 2026 21:07:41 GMT+0200 (Eastern European Standard Time)

India and the European Union are poised to announce a significant trade deal aimed at strengthening their economic ties, while navigating geopolitical tensions with the US.

After nearly two decades of negotiation, India and the EU are on the brink of an impactful trade agreement that promises to enhance market access for Indian exports to Europe and facilitate European investments in India. As geopolitical pressures mount, leaders from both regions emphasize a commitment to fostering trade and partnership over protectionism. The deal, set to be formally announced in Delhi, marks a strategic shift for both nations as they seek alternative economic partnerships.

The European Union and India are set to announce a landmark trade deal after nearly two decades of on-off talks, as both sides aim to deepen ties amid tensions with the US.

India's Commerce Secretary Rajesh Agarwal confirmed on Monday that the negotiations had concluded successfully and the deal is finalized.

European Commission President Ursula von der Leyen and European Council President António Luís Santos da Costa are currently in Delhi, where the formal announcement is expected.

In light of economic and geopolitical pressures from the US, both India and the EU are positioning themselves to strengthen their strategic and trade relationships globally.

Delhi is currently dealing with 50% tariffs imposed by former President Donald Trump last year, as talks for a trade deal between India and the US remain stalled.

The EU has just faced a challenging situation as Trump threatened to escalate trade tensions with European allies. Costa emphasized that this new deal sends an important political message to the world, as it reflects a belief in trade agreements over tariffs during a time of rising protectionism.

Von der Leyen added that Europe and India are committed to working together to shape a new global order. These sentiments signal a significant alignment in economic strategy among both trade partners.

Von der Leyen and Costa attended India's Republic Day celebrations as chief guests and will meet with Prime Minister Modi for a bilateral summit where the trade deal is expected to be publicly announced.

This agreement will facilitate India's exports to European markets and ease the entry of European goods, enhancing trade dynamics significantly, with expectations that it represents a quarter of global GDP and one-third of international trade.

After more than a decade of stalled talks that began in 2007, the deal's completion symbolizes a crucial partnership, aiming to address major areas such as access to the Indian automobile market, agricultural goods, and tariff regulations.

In the context of increasing global trade agreements, including recent deals between India and countries like the UK, Oman, and New Zealand, this anticipated trade pact with the EU underscores the global shift towards diversified economic partnerships.