Commerce Secretary Rajesh Agrawal expected in Brussels to resolve procedural issues, with trade pact likely to become operational in early 2027 
Business

India, EU push to sign landmark trade pact during Modi's Brussels visit

Both sides target December 17-18 for signing free trade agreement as European Commission seeks faster approval from member states

India and the European Union are accelerating efforts to sign their long-awaited Free Trade Agreement (FTA) by December, with both sides aiming to conclude the process during Prime Minister Narendra Modi's expected visit to Brussels.

According to reports citing people familiar with the developments, the two sides are targeting December 17 or 18 for the signing, while the European Commission has proposed a fast-track procedure to secure approval from the Council of the European Union.

The proposed arrangement is intended to avoid procedural delays and enable the agreement to be signed before the end of the year.

Modi's expected Brussels visit could coincide with his proposed travel to the United States for the G20 Summit in December. However, the dates of the visit and the signing have not been officially confirmed.

๐—˜๐—จ ๐˜€๐—ฒ๐—ฒ๐—ธ๐˜€ ๐—ณ๐—ฎ๐˜€๐˜๐—ฒ๐—ฟ ๐—ฎ๐—ฝ๐—ฝ๐—ฟ๐—ผ๐˜ƒ๐—ฎ๐—น

The European Commission has proposed proceeding with the original English text of the agreement rather than waiting for translations into all 24 official EU languages.

The proposal, associated with European Trade Commissioner Maroลก ล efฤoviฤ, could significantly reduce the time required to obtain the necessary approval.

The translation process could otherwise delay the agreement by more than a year, according to people familiar with the discussions.

India and the EU concluded negotiations on the trade agreement on January 27, 2026, following years of negotiations. The agreement has since been moving through the legal and institutional approval process.

๐—›๐—ถ๐—ด๐—ต-๐—น๐—ฒ๐˜ƒ๐—ฒ๐—น ๐˜๐—ฟ๐—ฎ๐—ฑ๐—ฒ ๐˜๐—ฎ๐—น๐—ธ๐˜€

Commerce Secretary Rajesh Agrawal is expected to visit Brussels this week to address outstanding procedural matters. His visit comes amid Commerce and Industry Minister Piyush Goyal's engagements in Germany and the Netherlands between October 22 and 27.

During his European visit, Goyal met German Federal Minister for Economic Affairs and Energy Katherina Reiche and economic policy adviser Levin Holle.

Goyal also highlighted the agreement's potential to expand market access, strengthen supply chains and create fresh opportunities for investment and bilateral trade.

Meanwhile, a delegation from the European Parliament's Committee on Foreign Affairs, led by chairman David McAllister, is scheduled to visit New Delhi from October 26 to 28.

๐—Ÿ๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜€๐˜ ๐˜๐—ฟ๐—ฎ๐—ฑ๐—ฒ ๐—ฝ๐—ฎ๐—ฐ๐˜

The proposed agreement would create one of the world's largest free trade areas, covering nearly a quarter of the global population and approximately 25 per cent of global GDP.

According to European Commission figures, bilateral goods trade between India and the EU reached EUR 118 billion in 2025, while services trade stood at EUR 67 billion.

India's major exports to the European Union include machinery, chemicals, textiles, metals and petroleum products. European exports to India primarily comprise machinery, transport equipment and chemicals.

The agreement aims to reduce tariffs, simplify trade procedures, improve market access and strengthen investment opportunities between India and the 27-member bloc.

๐—˜๐—ฎ๐—ฟ๐—น๐˜† ๐Ÿฎ๐Ÿฌ๐Ÿฎ๐Ÿณ ๐˜๐—ฎ๐—ฟ๐—ด๐—ฒ๐˜

Negotiations for the India-EU FTA began in 2007 but were suspended in 2013 following differences over the scope of the agreement. Talks resumed in 2022 before concluding in January this year.

Following the proposed signing, the agreement will still require further institutional approvals, including the consent of the European Parliament and completion of India's domestic procedures.

Both sides are working towards making the agreement operational in early 2027, although the final timeline will depend on the remaining approvals.

The proposed December signing would mark a significant step in strengthening economic relations between India and the European Union amid changing global trade conditions.