India and the EU closed a trade deal after nineteen years of talks. What it commits anyone to is the next part.

India and the European Union announced the conclusion of a free trade agreement on January 27, 2026, at the 16th India-EU Summit in New Delhi, jointly by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen. The negotiations were formally restarted in July 2022 after an earlier round that began in 2007 and stalled in 2013. A security and defence partnership was signed alongside.

• Over 99% of Indian exports gain preferential entry into the EU, according to the Indian government.
• INR 6.41 lakh crore, about USD 75 billion, of Indian exports described as poised to benefit; USD 33 billion of that in labour-intensive sectors such as textiles, leather, marine products, gems and jewellery.
• The EU side says it will eliminate or reduce tariffs on 96.6% of traded goods by value, with about EUR 4 billion in duty savings for European exporters.
• Automobile liberalisation described as calibrated, with reciprocal market access.
• Sensitive agricultural products and the dairy sector are excluded from market access commitments.
• Forward-looking provisions on the Carbon Border Adjustment Mechanism, plus a future-ready mobility framework for skilled and semi-skilled Indian professionals.

The two headline percentages describe the same deal from opposite ends. Preferential entry for 99% of Indian exports and tariff elimination on 96.6% of traded goods by value count different things: one counts the lines India gets, the other counts the value of trade that moves. Both can be true, and both are consistent with an agreement that took nineteen years to close.

The signature is the easy part

Conclusion of negotiations is not entry into force. The agreement still has to be signed formally, approved by the European Parliament and by member states, and then ratified. That is why the summit itself was only part of the week's business: European Council President Antonio Costa and Ms von der Leyen attended India's Republic Day celebrations on January 26 as guests of honour, a day before the announcement. Until the text clears Brussels and Strasbourg, the tariff schedule is a political commitment rather than a legal one.

This is India's biggest free trade agreement. It will make access to European markets easier for India's farmers and small business.