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India-EU free trade pact set to take centre stage this Republic Day
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Friday, 23 January, 2026, 14 : 00 PM [IST]
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Our Bureau, New Delhi
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India’s long-awaited free trade agreement (FTA) with the European Union (EU) is poised to take centre stage around India’s 77th Republic Day celebrations, signalling a major shift in trade dynamics that could unlock new opportunities for Indian food and agricultural exporters. Negotiations between the two sides have intensified in recent weeks, with Commerce Secretary Rajesh Agrawal stating that the pact is “very close” to conclusion, with most chapters finalised ahead of senior EU leadership’s visit scheduled for late January.
The proposed FTA, expected to be formally announced around Republic Day and at the India-EU Summit on January 27, marks a strategic milestone in bilateral economic ties. While sensitive agricultural issues like dairy and staple crops have been excluded from the immediate agreement to address domestic concerns in both markets, processed agri-products and food items are still likely to benefit from enhanced market access and tariff reductions.
India’s trade relationship with the EU is already substantial bilateral merchandise trade reached about USD 136.5 billion in FY 2024-25, with Indian exports accounting for nearly USD 76 billion positioning the EU as India’s largest trading partner for goods. A comprehensive FTA is expected to further expand access for Indian goods, including ready-to-eat foods, beverages, spices, processed foods and allied categories, while strengthening services and investment links.
Industry stakeholders in the food and agri sector view the impending pact as a potential game-changer. Reduced tariffs and streamlined regulatory processes in Europe could bolster Indian exporters’ competitiveness against other global suppliers. Experts note that enhanced inclusion under the FTA could help diversify export markets, especially at a time when global trade patterns are reshaping due to tariff pressures from other regions.
As both sides work to resolve final technical details including regulatory and carbon-related standards the trade deal heralds a new era of deeper economic integration, with significant implications for India’s food and agricultural export ambitions in one of the world’s largest consumer markets.
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