Published on 17 March 2026 in Client Alerts

India and EU sign an FTA labelled “the mother of all deals”

On 27 January 2026, India and the European Union signed a free trade agreement (“FTA”), after over two decades worth of negotiations.  The FTA, called by some the “mother of all deals”, is the largest deal ever signed by these two parties.  The FTA is expected to cover a market of over USD 24 trillion and aims to save over EUR 4 billion per year in duties on European products.

As per the Indian Government’s factsheet, the FTA grants India preferential access to over 97% of EU tariff lines, including an immediate elimination of tariffs over textiles, leather and footwear, tea, coffee, spices, sports goods, toys, gems and jewellery and certain marine products, amongst others.  These products are currently subject to over 4% to 26% import duty.  The elimination of tariffs is expected to enhance the price competitiveness of Indian goods in the EU market.  This can potentially prove to be beneficial for Indian exporters, considering they have been disproportionately affected by US tariffs recently.

In reciprocation, India has agreed to eliminate tariffs on 86% of tariff lines, including removing high duties on industrial products like cosmetics, plates, car parts, textiles, machinery and boats.  It will also significantly eliminate duties on key food exports from the EU, including olive oil, non-alcoholic beer and processed food.  Further tariff reductions are expected to occur in phased stages under the agreement.

For further information, please contact info@volterrafietta.com.