India-EU trade deal talks conclude, signing ‘at an early date’; likely to take effect next year

INdia and the European unification (EU) feature successfully concluded negotiations for the proposed release merchandise accord, commerce secretary Rajesh Agrawal said on Monday. He said the deal, from the Indian perspective, is “balanced and forward-looking,” which will help improve India's economic integration with the EU.Legal scrubbing of the FTA text is underway, and the endeavour will be to complete the processes and sign the pact at an early date, he said, as per news agency PTI."Negotiations have been successfully concluded. The deal has been finalised," Agrawal said. It will propel trade and investments in both economies, he said.The deal is expected to be signed this year, and it may come into effect early next year, the PTI report said.What the EU says about the ‘mother of all deals’ with IndiaIn an interview with Euro News ahead of the high-level EU-India summit, European Union Trade Commissioner Marcos Sefcovic said the long-awaited free trade agreement with India is "very close" and could significantly open the Indian market to European firms.Sefcovic described the prospective pact as the "mother of all deals," noting that negotiators are "checking their final numbers" as the European bloc pushes to reduce India's steep import duties, which can reach up to 150% in some sectors."In some sectors, India has tariffs going up to 150%. And therefore, big parts of the economy have been completely closed off to the European exporters," he said, adding: "Now the big benefit will be opening the economy."According to Sefcovic, the agreement would create a free trade area encompassing roughly 2 billion people and lift many Indian customs duties on European goods, although sensitive sectors will be excluded to focus on "the positive outcome.""This is the largest trade deal ever," he said, highlighting that around 6,000 European companies already operate in India and trade between the two partners has surged significantly over the past decade, reported Euro News.Brussels views the deal as a strategic move to diversify its trade ties beyond the United States and China, while Indian officials have signalled willingness to open markets to foreign investment and goods in key areas.Vice-President of the European Commission, Kaja Kallas, also signalled strong momentum in EU-India relations spanning trade, security and defence cooperation. She said in a post on X that the EU is seizing the opportunity to deepen ties. She noted that personnel from EU naval operations Atalanta and Aspides are participating in India's Republic Day parade for the first time, calling it a symbol of the deepening bond between the two sides.EU leaders at the 2026 Republic DayEuropean Council President Antonio Costa and European Commission President Ursula von der Leyen were in New Delhi on Monday as chief guests for the 77th Republic Day parade, ahead of the 16th India-EU Summit.Prime Minister Narendra Modi said that India was privileged to host the leaders, adding that the presence of the EU Delegation underscores the growing strength of the India-European Union partnership.The European Commission on Monday shared glimpses of Ursula von der Leyen and Antonio Costa attending the celebrations in Delhi. The EC said that it looked forward to the 16th EU-India Summit.In a post on X, the EC said, "Today we join India in celebrating Republic Day. Our partnership is built on a shared goal to tackle the world's greatest challenges. As we look forward to tomorrow's EU-India Summit, we are ready to take our next step together."