Summary: The European Union–India Free Trade Agreement (FTA), often described as the “mother of all deals,” marks a historic milestone after 14 rounds of negotiations between 2022 and 2025, covering trade in goods and services, investment protection, digital trade, intellectual property, sustainability, and regulatory cooperation. The agreement aims to liberalise over 90% of tariff lines on both sides, significantly improving market access while safeguarding sensitive sectors. It balances tariff reductions with strict rules of origin, robust customs facilitation, and high sanitary, phytosanitary, and technical standards. Key gains include expanded opportunities for agri-food, pharmaceuticals, chemicals, machinery, fisheries, footwear, and services, alongside enhanced protection for geographical indications and intellectual property. The FTA also introduces advanced disciplines on digital trade, competition, labour rights, environmental protection, and sustainable development, aligning trade growth with global climate and social commitments. Once ratified, the agreement is expected to deepen economic integration, improve quality standards, and create a stable, predictable framework for long-term EU–India trade and investment.
Today, the Indian government and the European Union signed an EU–India trade agreement, popularly called the “Mother of All Deals,” which is an exciting moment for anyone interested in international trade.
Some of the major exciting features of the said agreement are:
The reference is given below from the EU website:
How many rounds of discussion took place between the EU and India?
Report of Round 1 – July 2022
Report of Round 2 – October 2022
Report of Round 3 – Nov.–Dec. 2022
Report of Round 4 – March 2023
Report of Round 5 – June 2023
Report of Round 6 – October 2023
Report of Round 7 – February 2024
Report of Round 8 – June 2024
Report of Round 9 – September 2024
Report of Round 10 – March 2025
Report of Round 11 – May 2025
Report of Round 12 – July 2025
Report of Round 13 – September 2025
Report of Round 14 – October 2025
On what topics were the discussions concentrated?
Though I have tried to give some ideas from the EU website, you will appreciate that one needs a deep understanding of technical, financial, legal, and inter-country knowledge to understand the terms of the agreement.
- Trade in Goods
- Rules of Origin
- Customs and Trade Facilitation
- Sanitary and Phytosanitary Measures
- Technical Barriers to Trade
- Trade Remedies
- Services and Investment
- Digital Trade
- Government Procurement
- Intellectual Property
- Anticompetitive Conduct, Merger Control, and Subsidies
- State-Owned Enterprises
- Small and Medium-Sized Enterprises
- Energy and Raw Materials
- Transparency
- Good Regulatory Practices
- Sustainable Food Systems
- Dispute Settlement
- Trade and Sustainable Development
- Mutual Administrative Assistance in Customs Matters
- Anti-Fraud
- Capital Movements, Payments and Transfers, and Temporary Safeguard Measures
- Exceptions
- Car Annex
If one has to invest in another country, on which investment protection agreement will one base assumptions?
The “Investment Protection Agreement” was discussed during 6 rounds of discussions over the June 2022–October 2025 meetings.
A detailed report of discussions for each of the 6 rounds is available if someone keeps their learning knowledge on the rise.
Report of Round 1 – June 2022
Report of Round 2 – October 2022
Report of Round 3 – December 2022
Report of Round 4 – March 2023
Report of Round 5 – June 2023
Report of Round 6 – October 2025
The EU has put on record a copy of its textual proposal (containing 42 pages) on its website for clarification.
We are aware that both the EU and India have thousands of years of civilisational existence and have developed various geographical indications that are unique and offer special importance in their evolution.
Examples: haldi, spices, special types of rice/food grains from India; wine, whisky, cheese from various EU nations, etc.
Yes, the Geographical Indications Agreement was discussed in 6 rounds of discussions during 2022–2024.
Report of Round 1 – June–July 2022
Report of Round 2 – October 2022
Report of Round 3 – December 2022
Report of Round 4 – July 2023
Report of Round 5 – December 2023
Report of Round 6 – March 2024
I have given some interesting information under each head that has been under discussion since 2022.
Trade in Goods
Do you know that the EU imported goods worth €71 billion in 2024 from India, while exporting nearly €49 billion during the same year? Yes, India had a trade surplus of €22 billion.
Then what?
The EU will eliminate tariffs on over 90% of tariff lines (91% in terms of value), and India will eliminate tariffs on 86% of tariff lines (93% in terms of value), making the agreement a win-win situation.
What are the strong benefits of economic sectors on each side?
For the EU: agri-food, chemicals, pharmaceuticals, machinery, medical devices, avionics, and automotive industries.
For India: fisheries, chemicals, textiles, footwear, and pharmaceuticals.
India will remove high duties on industrial products (which, on average, are above 16%), such as chemicals (current tariffs up to 22%), cosmetics at various stages, plastics (over 7 years), car parts (5–10 years), textiles and apparel at the point of entry, ceramics at the point of entry, boats at the point of entry, and machinery — half at the point of entry and the rest over 10 years in stages.
These duty reductions and eliminations will facilitate EU exports of these products entering India more freely. Yes, excessive tariffs denied Indian people access to top-quality materials.
Then what about the agri-food sector, which has always been treated as a sacred cow for Indian users?
On the agri-food sector, considering the very high level of protection and the sensitivities of India, the Agreement is balanced because it opens market access in key export interests while preserving sensitivities.
The agreement will eliminate duties on several key EU agri-food exports, such as:
- Olive oil (current tariff up to 45%, to be eliminated at entry into force or after a 5-year staging period)
- Non-alcoholic beer and several fruit juices (current tariff up to 55%, to be eliminated in 5 years)
- Processed food such as confectionery, breads, pastries, pasta, chocolates, and pet food (current tariff 33%, to be eliminated at entry into force or after staging)
- Sheep meat (current tariff 33%, to be eliminated over staging)
Then you could venture to ask what would happen to Indian products.
Fortunately, we shall upgrade our quality.
The agreement will also offer important market access improvements for wine, spirits, beer, as well as fruits, such as:
EU exports of alcoholic beverages like wine will be at 30% for most wines, 40% for spirits, and 50% for beer.
EU exports of fruits like kiwis and pears will benefit from steep reductions in tariffs.
Yes, working groups from both sides will upgrade produce in both nations, and for the first time our agriculturists will get the best consultations to meet world-class standards.
EU exports of alcoholic beverages currently subject to very high tariffs (reaching 150% in some cases) will be reduced over time to 30% for most wines, 40% for all spirits, and 50% for beer.
EU exports of fruits (e.g., kiwis and pears) will benefit from sizeable Tariff Rate Quotas (TRQs), allowing expansion of EU market share in India.
The agreement will establish a working group on wines and spirits, which will serve as a platform for exchange of information and cooperation between the parties, including on oenological practices.
At the same time, the EU will protect its agricultural sensitivities, meaning that no concession will be granted for sugar and ethanol, rice and soft wheat, beef and poultry, milk powders, bananas, and honey.
Well-calibrated quotas will limit imports of table grapes and cucumbers.
The EU will protect its very high sanitary and phytosanitary standards, and the EU’s stringent rules on animal and plant health and food safety will be maintained with no exception.
Rules of Origin
The EU and India have agreed on rules of origin to ensure that products need to be processed in one of these countries to receive trade preferences.
Self-declared proof of origin by exporters may attract the customs authorities of the other country.
Customs and Trade Facilitation
I would quote from the original website for easy reference:
“The EU and India have agreed to:
- further facilitate legitimate trade between the EU and India, so that companies legitimately trading goods between the EU and partner countries get their goods easier and faster through customs; and
- ensure effective customs control, so that imported goods meet all the rules of the importing country, including requirements related to safety, security, and respect of intellectual property rights.”
The chapter on Customs and Trade Facilitation includes provisions on transparency, advance rulings, simplified procedures, and expedited release of goods, reducing corruption.
Sanitary and Phytosanitary Measures
The provisions on animal and plant health (sanitary and phytosanitary – SPS) are comprehensive and balanced, covering EU interests. They are subject to higher transparency and predictability for trade in plant and animal products, including fisheries and aquaculture products.
What are the procedures to be noted?
Strict timelines, approval of import conditions, adaptation to regional conditions of animal and plant health, listing of establishments for products of animal origin, exchange of information, certification, etc. Yes, European standards will be strict, strictly observed, and many suppliers would face rejection for poor standards. Obviously, the EU retains its right of rejection.
Technical Barriers to Trade
The Technical Barriers to Trade (TBT) chapter sets out provisions on technical measures having an impact on trade in goods, such as standards, technical regulations, and conformity assessment procedures. Obviously, WTO standards would be strictly maintained.
Trade Remedies in the Course of Business Transactions
The Trade Remedies chapter strikes a careful balance between advancing market openness and ensuring effective protection against unfair trade practices and import surges.
It confirms the possibility of using trade defence instruments (anti-dumping, anti-subsidy, and global safeguards) to tackle unfair trade between the parties.
Services
With €59.8 billion in 2024, with EU exports amounting to €26 billion and imports amounting to €33.8 billion, it is expected to expand opportunities for both the EU and India to have stable, predictable, and multifold trade growth.
Let us look at statistical details to cheer up more.
What will be the key benefits to EU exporters?
- Tariffs on 96.6% of EU goods exports will be eliminated or reduced.
- Savings of up to €4 billion per year in duties on European products.
- Competitive advantage for EU exporters, with the biggest trade opening India has given to any trade partner.
- Privileged access to the Indian services market in key sectors such as financial services and maritime transport.
- Simplification of customs procedures to make exports quicker and easier.
- Protection of EU intellectual property such as trademarks.
- A dedicated chapter for small EU businesses.
I have given below some of the ambitious service commitments by the EU and India:
- Binding of the current level of liberalisation for services sectors exceeding India’s commitments with any other trading partner like the UK and Australia.
- Binding of dredging and maritime cable-laying services for the first time, satisfying key economic interests of the EU.
- Enhanced transparency through obligations on senior management and boards of directors and local presence, increasing exposure of senior-level management to world standards.
Intellectual Property Rights
What about intellectual property rights protection, which has consistently been held against Indian traders/manufacturers as blatant violators?
From the website information:
The agreement provides a high level of protection and enforcement of IP rights, in line with Indian and EU intellectual property laws. It covers a wide array of categories of IP rights, namely:
- Copyright and related rights
- Trademarks
- Designs
- Protection of trade secrets and undisclosed information
- Plant varieties
The comprehensive section on IP rights enforcement includes measures, procedures, and remedies to be provided by each Party to ensure enforcement of intellectual property rights.
The IP Chapter also specifies relevant international agreements on IP that the Parties are required to comply with.
India will have to update its rules and regulations on IP rights and their enforcement and set up time-bound actions.
Trade in Services
It will improve on various grounds:
- It will incorporate other features from modern FTAs of the EU.
- Incorporate and implement most of the rules agreed under the WTO Domestic Regulation Joint Initiative, of which India is not a member.
- Provide a framework like the Understanding on Commitments in Financial Services, which India did not follow in GATS.
- Include clear commitments related to senior management and boards of directors as well as local presence, which are new for India. Actual involvement of top-level personnel ensures deeper understanding and implementation of top decisions.
- Ensure greater clarity and enforceability of India’s commitments.
- Include provisions on mobility of professionals, which are in line with the most ambitious ones that each party has committed to in the past. However, repetition of US-like experiences is negated, and there will be no more competing with local talent or replacement.
Some more interesting information for consideration:
The deal has a dedicated chapter to help small businesses. They will be able to easily access all information on doing and setting up business in the EU and India. SME contact points will work on making trading easier for small companies.
Further, the tariff reductions, removal of regulatory barriers, transparency, and stable and predictable rules will help companies import-export in a cheaper, simpler, and more effective way.
The agreement requires respect for the core International Labour Organization principles and includes legally binding commitments on issues such as decent working conditions, labour inspection, and responsible business conduct.
The agreement provides a high level of protection and enforcement of intellectual property rights, including with respect to copyright, trademarks, designs, protection of trade secrets and undisclosed information, and plant varieties.
What needs to happen for the deal to start working?
Here are the steps the EU still needs to take:
- Publish negotiated draft texts
- Legal revision and translation into all official EU languages
- Propose the agreement to the Council for signature and conclusion
- Adoption by the Council
- Signing of the agreement between the EU and India
- European Parliament’s agreement to the deal
- The Council’s decision on concluding the deal (essentially allowing it to enter into force)
Once India also ratifies the Agreement, it can enter into force.
Digital Trade
The Digital Trade chapter contributes to a predictable, secure, and fair digital trade environment. It provides rules that build consumer trust.
More on digital trade, one of the most abused sections for Indian customers.
It integrates the majority of the rules agreed under the WTO Electronic Commerce Joint Initiative, of which India is not a member.
Importantly, it includes rules on the protection of software source code, which protect businesses from the mandatory disclosure of source code and support innovation in the EU technology sector.
In addition, it contains rules on online consumer protection and the prevention of spam.
This guarantees consumer protection in electronic commerce transactions and protects users from unsolicited direct marketing communications (spam).
The agreement has issued detailed guidelines on anticompetitive conduct, merger control, and subsidies, transparency of conduct, and how small and medium industries will be helped to set up their operations in the EU and India without delay and get the benefits of trade operations.
The chapter on Good Regulatory Practices emphasizes the establishment of a set of Good Regulatory Practices (GRP) for the development and implementation of regulations for goods and services. These practices help in making such regulations efficient.
While there were disputes on trade and sustainable development, the agreement has shown its inclusion of the following messages.
Yes, the agreement:
- enhances environmental protection and addresses climate change
- protects workers’ rights
- supports women’s empowerment
- provides a platform for dialogue and cooperation on trade-related environmental and climate issues
- ensures an effective implementation mechanism
Required actions on both sides will be taken to achieve the set goals.
The deal requires respect for the core International Labour Organization (ILO) principles covering subjects such as:
- freedom of association and the right to collective bargaining
- the elimination of all forms of forced and compulsory labour
- the abolition of child labour
- non-discrimination at work
- a safe and healthy working environment
It may be recollected that the EU has ensured the above lofty principles while importing goods and services from any country.
Sustainable Food Systems
The Sustainable Food Systems chapter creates a framework to cooperate on strengthening policies and defining programmes that contribute to the development of sustainable, inclusive, healthy, and resilient food systems and to jointly engage in the transition towards sustainable food systems.
The agreement:
- enhances environmental protection and addresses climate change
- protects workers’ rights
- supports women’s empowerment
- provides a platform for dialogue and cooperation on trade-related environmental and climate issues
- ensures an effective implementation mechanism
It protects both parties’ right to regulate and makes sure that the parties will not weaken, waive, or fail to enforce their laws in order to encourage trade or investment.
The agreement also offers civil society organisations an active role in monitoring the implementation of the agreement.
Trade, Environment, and Climate – Supporting Global Governance and the Green Transition
Both parties commit to working towards the implementation of the Multilateral Environmental Agreements (MEAs) that each party has ratified, such as the Paris Agreement and the Convention on Biological Diversity, etc.
The Agreement commits the EU and India to work together on climate change issues, such as renewable energy or reducing emissions in the maritime sector, as well as on sustainable management of natural resources, including marine natural resources and forests. It also promotes cooperation to encourage the shift to a circular and resource-efficient economy.
The EU–India FTA includes dedicated provisions on the protection and management of natural resources, setting commitments with respect to:
- forest conservation
- conservation and sustainable use of biodiversity
- combating illegal wildlife trade
- combating illegal logging and related trade
- combating Illegal, Unreported, and Unregulated (IUU) fishing
Through its market access commitments, the deal will make trade and investment in low-carbon goods, services, and technology easier.
These goods and services contribute to achieving environmental and climate goals by preventing, limiting, minimising, or remediating environmental damage to water, air, and soil and by contributing to the dissemination of technologies that help mitigate climate change.
Trade and Workers’ Rights
The deal requires adherence to the core International Labour Organization (ILO) principles covering:
- freedom of association and the right to collective bargaining
- the elimination of all forms of forced and compulsory labour
- the abolition of child labour
- non-discrimination at work
- a safe and healthy working environment
Initial Provisions and General Definitions
The chapter on Initial Provisions and General Definitions contains the usual provisions for every FTA, in particular on the objective of the FTA, the establishment of a free trade area and its territorial application, the general definitions, and the relation to other agreements.
Matters involved in the general agreement are explained under institutional provisions.
Conclusion
This is a historical trade agreement with India, built on the hard path of real engineering that the EU acquired over centuries. With a younger population, let us grow together.
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