The European Commission on Friday moved the EU-India free trade agreement closer to implementation, submitting proposals to the Council of the European Union seeking its approval to sign and conclude the landmark pact, often described as the “mother of all deals”.
If approved by the Council and subsequently cleared through the required procedures, the free trade agreement () would be the largest trade deal ever concluded by the EU and India, the Commission said.
The pact would eliminate or reduce tariffs on about 96% of EU goods exports to India, with the Commission estimating that the tariff cuts would save European exporters around €4 billion a year in duties.
The is intended to improve market access, remove unnecessary barriers to trade and provide more predictable rules for trade and investment between the two sides. It is expected to make it easier for European companies to enter the Indian market and compete on a more level playing field, while giving consumers greater choice and potentially more competitive prices, the Commission said.
The EU and India currently trade more than €180 billion of goods and services a year, supporting nearly 800,000 jobs in the EU, according to the Commission.
“Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time,” Maroš Šefčovič, European commissioner for and Economic Security, Interinstitutional Relations and Transparency, said.
The agreement brings together two of the world’s largest economies, representing a market of 2 billion people and around a quarter of global gross domestic product, Šefčovič said.
The Commission has asked the Council to authorize the signing of the agreement. It will then require the European Parliament’s consent before it can be concluded and enter into force. Indian authorities are simultaneously undertaking their own internal procedures for ratification, the Commission said.
The proposal follows the EU’s fast-track procedure for trade agreements, outlined by Šefčovič earlier this year to speed up their implementation. The Commission said accelerating the process was particularly important amid geopolitical uncertainty and growing pressure on the global trading system.
The EU-India pact also forms part of the bloc’s broader effort to strengthen economic ties with key partners in the Indo-Pacific region, the Commission said.
The move follows the conclusion of negotiations between the EU and India, paving the way for formal approval and ratification on both sides.
“Fantastic news! EU-IN FTA just moved one step closer to the finish line! @EU_Commission has sent its proposal to @EUCouncil, clearing the path for early approval; while the full text is now public. This isn’t just another agreement. It’s a bold leap for two economic powerhouses!,” Jean-Eric Paquet, EU ambassador-designate of the European Union to India and Bhutan, said on X.
