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India and EU Seal Sweeping Trade Pact With Near-Universal Market Access for Indian Exports

EU legal review and ratification now determine timing, with implementation planning underway.

Overview

  • Officials say more than 99% of Indian exports by value will receive preferential access to the EU, with full zero-duty entry for textiles from day one.
  • The agreement extends beyond tariffs to services, digital trade and technology collaboration on areas such as AI and semiconductors, paired with a new security and defence partnership.
  • Commerce Minister Piyush Goyal says safeguards preserve policy space for sensitive sectors, including rice, sugar, wheat and cereals.
  • Analysts describe the pact as a geoeconomic play to diversify supply chains and reduce exposure to coercive dependencies, even as some U.S. officials voice criticism.
  • Entry into force requires EU legal scrubbing, translation and ratification by member states and the European Parliament, with public statements pointing to steps targeted in 2026.