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PM Modi to sign India–EU free trade deal in Brussels in December, says EU's Costa
In 60 seconds: Prime Minister Narendra Modi will travel to Brussels in December to sign the India–EU free trade agreement, European Council President Antonio Costa said on Thursday in Montreal. The two sides concluded negotiations earlier this year. The pact covers a market of more than two billion people, and Commerce Minister Piyush Goyal has said it could come into force four to five months after it is signed.
Why it matters
The EU is one of India's biggest trading partners. Signing moves the deal from promise to law, opening the door to lower tariffs for Indian exporters.
Explain it simply
Two shopkeepers can shake hands on a deal, but it counts only once both sign the written agreement. India and the EU shook hands in January; the signature comes in December.
The 3-minute read
What happened
Costa spoke at an event of the Montreal Council on Foreign Relations while in Canada for a two-day EU–Canada summit. Modi's visit is expected shortly before a meeting of EU leaders in Brussels that begins on December 17.
Background
In 2024-25, India–EU goods trade was about $136.54 billion, with Indian exports of $75.85 billion and imports of $60.68 billion. Services trade in 2024 was about $83.10 billion.
How it works
According to the report, India has won market access for more than 99% of its exports to the EU by trade value. The deal also has services commitments and a mobility framework for skilled Indian professionals.
What's next
After signing in Brussels, the agreement must complete approval steps on both sides. Goyal expects it to become operational four to five months later.
What it means for you
Lower tariffs could boost jobs in export sectors such as textiles and leather, and the mobility framework may help skilled Indians find work in Europe.
Key numbers
- 2 billion+: People in the combined market
- $136.54 bn: India–EU goods trade, 2024-25
- >99%: Indian exports by value getting EU market access
Both sides
- India: The deal opens a huge market for Indian goods and services and gives skilled workers new routes to Europe.
- European Union: Costa presents the pact as a broader strategic partnership, not just a trade deal.
Key terms explained
- European Council
- The EU body of the heads of state or government of member countries that sets the bloc's overall direction.
- Free trade agreement
- A pact under which countries cut or remove tariffs and other barriers on most of the trade between them.
The story so far
- Jun 2022: India and the EU relaunch free trade talks after a gap of about nine years. Talks first launched in 2007 stalled in 2013. They were formally relaunched in June 2022.
- 27 Jan 2026: Conclusion of the India–EU FTA is announced at the 16th India–EU Summit in New Delhi. PM Modi and European Commission President Ursula von der Leyen announced the end of negotiations during a visit by European leaders to India.
- Today: EU's Costa: Modi to sign India–EU FTA in Brussels in December
Exam notes (UPSC, SSC, Banking, PSC)
- The European Union has 27 member states; its headquarters institutions are in Brussels, Belgium.
- The European Council (of EU leaders) is chaired by its President, currently Antonio Costa; the European Commission is led by Ursula von der Leyen.
- India and the EU have been strategic partners since 2004.
- India–EU FTA talks were launched in 2007 as the Broad-based Trade and Investment Agreement (BTIA).
Likely exam question: What could the India–EU FTA mean for India's exports and services sector? What challenges remain before it takes effect?