Negotiations on the landmark free trade agreement between the European Union and India are entering their final phase. Trade representatives from both sides indicate that the agreement is set to be formally signed on 27 January 2026 in New Delhi, during an EU–India summit attended by leaders of both parties. The agreement is expected to be signed by European Commission President Ursula von der Leyen and President of the European Council António Costa, together with Indian Prime Minister Narendra Modi.
According to confirmed reports, the agreement will not cover the agricultural sector, which remains strategically protected by India. Agriculture is considered a highly sensitive political area and employs a significant share of the country’s workforce. As a result, access to the Indian market for agricultural products has been excluded from the scope of the deal.
At the same time, the agreement is set to cover a broad range of industrial goods, services, investments, as well as regulatory and technological cooperation. This could significantly deepen economic ties between the EU and India and open access to a market representing nearly 25% of the world’s population.
The agreement is expected to deliver substantial tariff reductions, including on European wines and spirits currently subject to duties of up to around 150%, which are to be sharply reduced. It should also ease access to the Indian market for industrial goods and services, strengthen investment protection, and establish frameworks for regulatory cooperation.
More broadly, the deal is expected to bring significant tariff cuts on a wide range of industrial and traded goods, reflecting strong EU pressure to reduce India’s very high duties on key European exports, including automobiles. It will also include provisions facilitating market access for goods and services, investment protection, and structured regulatory cooperation.
“This will be the largest and most ambitious trade agreement the EU has ever concluded with a non-European country. Those who start preparing before it is signed will benefit the most,” says Dr Judyta Latymowicz, an expert on Polish–Indian relations.
With more than 1.4 billion consumers and now one of the world’s largest economies, India is becoming a key trading partner for the European Union. Amid global geopolitical tensions, supply chain fragmentation, and rising protectionism, cooperation with India is no longer an alternative—it is a strategic necessity.
From a Polish perspective, the stakes are particularly high. India is increasingly emerging as one of the key directions for expansion for Polish businesses—not only as a sales market, but also as a manufacturing base and a technological and services hub. The finalization of the EU–India agreement will change the rules of the game for European companies operating in the region and significantly increase competitive pressure on the Indian market. Experts stress, however, that the trade agreement alone will not resolve all challenges. India remains a market that is complex in regulatory, cultural, and administrative terms, requiring conscious and well-prepared market entry strategies.
“A free trade agreement does not replace the work that must be done by companies themselves. Decisions on market entry models, local partners, regulatory compliance, and investment protection will remain crucial. Firms that learn these lessons early will gain a real cost and time advantage,” Dr Latymowicz emphasizes.
The signing of the agreement on 27 January 2026 will symbolically mark a new stage in EU–India economic relations. For businesses, it signals the need for a shift in mindset—from passive waiting to active planning.
“A free trade agreement is not a reward for patience; it is a tool for those who are prepared. For companies, the message is clear: either we start acting now, or we give way to the competition,” Dr Judyta Latymowicz concludes.
Source: CEO.com.pl
