Where it stands
| Step | Status |
|---|---|
| Negotiations concluded | Yes — 27 January 2026, at the EU–India summit in New Delhi |
| Proposal for signature sent to the EU Council | Yes — 11 September 2026 |
| Signature, European Parliament consent, ratification | Pending — signature targeted by end-2026 |
| Entry into force | Expected in 2027 |
Goods: the tariff cuts
- India will eliminate or reduce tariffs on 96.6% of EU goods exports; the Commission estimates about €4 billion a year in duty savings.
- Indian exports get preferential access on 97% of EU tariff lines (99.5% of trade value).
- Headline Indian cuts include cars (from 110% down to as low as 10%, phased), car parts, machinery, chemicals and pharmaceuticals, with wine and spirits phased down.
Services and mobility
- India opens 102 services sub-sectors to EU providers — including financial, maritime, telecom and professional services; the EU commits in 144.
- Mobility commitments for intra-corporate transferees, business visitors, contractual service suppliers and independent professionals.
- A commitment to conclude social security agreements with all EU member states within five years.
What isn’t in it (yet)
- Investment protection and geographical indications are separate agreements still under negotiation.
- CBAM: there’s no exemption for India from the EU’s carbon border mechanism, but a dedicated annex provides for dialogue and for India to receive any future flexibility the EU gives other partners.
- Tax: the FTA doesn’t change double tax treaties — withholding rates still follow each country’s treaty with India (see our Europe page).
What to do now
- European companies: model your India cost base and entity now — the entity, not the tariff, is the long-lead item. See company setup in India and GCCs.
- Indian exporters: check rules of origin for your products and get your supply-chain documentation ready.
- Services firms: plan secondments with the social security position in mind.
- Swiss, Norwegian and other EFTA firms don’t need to wait — see India–EFTA TEPA, already in force.
Frequently asked questions
Has the India–EU FTA been signed?
Not yet. Negotiations concluded on 27 January 2026; the European Commission sent its proposal for signature to the Council on 11 September 2026. Signature is targeted by the end of 2026, with entry into force expected in 2027.
How much will India cut tariffs on EU goods?
India will eliminate or reduce tariffs on 96.6% of EU goods exports, with phased cuts on cars, car parts, machinery, chemicals, pharmaceuticals, wine and spirits.
Does the India–EU FTA include investment protection?
No. Investment protection and geographical indications are being negotiated as separate agreements.
Does the India–EU FTA change withholding taxes?
No. Withholding taxes continue to follow each EU country's double tax treaty with India.
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.