India–EU FTA concluded – Fueling jobs, MSMEs and India’s next export boom

In brief

India and the European Union (EU) have concluded a landmark Free Trade Agreement (FTA or agreement) on 27 January 2026¹ , announced at the 16th India–EU Summit by Prime Minister Shri Narendra Modi and European Commission President H.E. Ms Ursula von der Leyen. This is the largest and most commercially significant trade deal ever concluded by either party.

The largest trade deal ever for both sides it creates a free trade zone covering nearly two billion people and 25% of global gross domestic product. The FTA enhances market access, services, mobility and regulatory cooperation, and is expected to boost trade, investment, jobs, micro small and medium enterprises (MSMEs) and sustainable development while protecting sensitive sectors.