Ursula Von Der Leyen: EU And India Have Reached A Historic Agreement

• 27.01.2026, 11:26

After nearly twenty years of negotiations.

The European Union and India have concluded a free trade agreement after nearly two decades of negotiations.

According to the website of the European Commission.

The President of the European Commission Ursula von der Leyen and the head of the European Council Antonio Costa are now on a visit to New Delhi, where, together with Indian Prime Minister Narendra Modi, they have agreed the final draft of the agreement.

"We have created a free trade area for 2 billion people, and both sides intend to reap the economic benefits. We have sent a signal to the world that rules-based cooperation still delivers excellent results," the European Commission chief said.

The agreement, among other things, provides for a gradual reduction in India's tariffs on cars from the EU - from 110% to 10%. Duties as high as 44% on machinery, 22% on chemicals and 11% on pharmaceuticals from the EU will be largely eliminated.

The parties agreed to eliminate or reduce export duties on agri-food products from the EU, opening up a huge market for European farmers.

The agreement will also give EU companies privileged access to the Indian services market, including key sectors such as financial services and maritime transport.

The signing ceremony is expected to take place on Tuesday, January 27, during the visit of EU officials to India.

The agreement is further subject to approval by the EU Council as well as the European Parliament. The Indian Parliament has to ratify it.