India–EU free trade agreement likely by January 27 as landmark deal nears conclusion

India and the European Union are close to finalising what could be one of the most significant trade deals in their shared history, with a formal announcement on the long-awaited free trade agreement (FTA) expected on January 27. The development is likely to coincide with the high-profile India–EU summit in New Delhi, a day after the Republic Day celebrations, underscoring the strategic, economic and political weight of the proposed pact at a time of global trade uncertainty.

According to officials familiar with the process, both sides are preparing to adopt a joint document declaring the conclusion of negotiations. Once announced, the agreement will move into legal vetting and ratification by the European Parliament and the Council, marking a critical milestone in India–EU economic relations after years of complex and stop-start negotiations.

The timing of the announcement is closely linked to the visit of top European leadership to India. European Council President Antonio Costa and European Commission President Ursula von der Leyen will attend India’s 77th Republic Day celebrations as chief guests before jointly co-chairing the India–EU summit on January 27.

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In a first, a military contingent from the European Union is also expected to participate in the Republic Day parade, signalling the deepening strategic partnership beyond trade. Alongside the FTA, the two sides are likely to sign a security and defence partnership agreement and a pact aimed at easing mobility for Indian professionals seeking employment across the EU.

The proposed agreement between India and the European Union would be the largest trade deal India has ever signed, covering goods and services across the 27-nation bloc. Commerce and Industry Minister Piyush Goyal has repeatedly described it as the “mother of all deals”, reflecting its scale and potential impact on India’s export-driven growth ambitions.

With a combined market of nearly two billion people, the agreement aims to link two of the world’s largest democratic economies at a time when protectionism, tariff disputes and geopolitical tensions are reshaping global supply chains.

The European Union is already India’s largest trading partner. For India, the agreement is expected to provide a strong push to labour-intensive sectors. New Delhi is pressing for zero-duty access for products such as textiles, leather, apparel, gems and jewellery, and handicrafts, sectors that generate large-scale employment and are central to the government’s manufacturing and export strategy. Despite the optimism, negotiations have not been without friction.

European Commission President Ursula von der Leyen said she will travel to India immediately after Davos, noting that the two sides are on the cusp of a historic trade agreement, often described as the “mother of all deals.”

Minister Goyal’s recent visit to Brussels provided momentum to the negotiations. “During this dialogue, we deliberated across key areas of the proposed agreement. We reaffirmed our commitment to a rules-based trading framework and a modern economic partnership that safeguards the interests of farmers and MSMEs while integrating Indian industries into global supply chains,” Goyal said.

European Commission President von der Leyen has described the proposed pact as being on the cusp of a historic free trade agreement, while also cautioning that some work still remains before the deal is fully sealed. Her remarks reflect both the ambition and the complexity of an agreement that has taken years to negotiate.