Lok Sabha Question No. 1716 (UNSTARRED), answered on 2026-02-10
Subject: India–EU Free Trade Agreement
Ministry: COMMERCE AND INDUSTRY
Asked by: Shri Sribharat Mathukumilli

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF COMMERCE

## LOK SABHA UNSTARRED QUESTION NO. 1716 ANSWERED ON 10/02/2026

## INDIA-EU FREE TRADE AGREEMENT

## 1716.  SHRI SRIBHARAT MATHUKUMILLI

Will the Minister of COMMERCE AND INDUSTRY ( वाणिज्य एवं उद्योग मंत्री) be pleased to state:

- (a) the latest status of the negotiations on the India-EU Free Trade Agreement (FTA) and the expected timeline for its conclusion and ratification;
- (b) the major sectors of goods and services identified by the Government that are expected to be impacted under the proposed FTA, including the benefits for exports and domestic industry competitiveness;
- (c) the estimated benefit to Indian consumers and exporters from tariff elimination and improved market access, including expected changes in trade volumes and foreign exchange earnings;
- (d) whether  the  Government  has  conducted  or  commissioned  any  impact assessment  studies  of  existing  free  trade  agreements  that  India  is  part  of, comparing  projected  versus  realised  benefits,  and  the  key  lessons  drawn relevant to the India-EU FTA; and
- (e) the steps the Government is taking to address non-tariff barriers and regulatory challenges identified by stakeholders in order to maximise the gains from the India-EU FTA?

## ANSWER

## वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI JITIN PRASADA)

(a) India and the European Union (EU) announced the conclusion of negotiations for a Free Trade Agreement (FTA) on 27th January 2026 at the 16th India-EU Summit, held in New Delhi. The agreement is to come into force after signing and ratification by both the Parties. The process will be carried forward by both the Parties in mutual consultation.

(b) The proposed FTA is expected to provide benefits to key goods sectors, including textiles, apparel, leather, footwear, gems and jewellery, marine products, engineering goods, chemicals, plastics and rubber, medical devices, and agricultural and processed food products etc., through preferential access across 97% of EU tariff  lines  and  more  than  99%  of  India's  export  value.  Improved  tariff  access  is expected to enhance India's export competitiveness, promote value addition, and provide  opportunities  for  integration  into  EU  value  chains,  thereby  strengthening domestic manufacturing and employment. In the services sector, India has secured commitments  across  144  services  subsectors,  including  IT/ITeS,  professional

services,  education,  and  other  business  services.  Indian  service  providers  are expected  to  benefit  from  a  stable  and  predictable  regime  in  the  EU  market  and facilitative mobility commitments for professionals, thereby boosting India's services exports.  EU's  strengths  in  high-technology  and  capital  intensive  services  are expected  to  support  export  growth  while  also  enhancing  the  competitiveness  of domestic service industries.

(c) The tariff elimination and preferential market access secured under the proposed FTA across 97% of EU tariff lines and more than 99% of India's  export value are expected  to  enhance  the  price  competitiveness  of  Indian  goods,  particularly  in labour-intensive and MSME-driven sectors, leading to expansion of trade volumes and  higher  foreign  exchange  earnings  over  time.  Indian  consumers  are  also expected to benefit from access to high-technology and quality goods at competitive prices,  reducing  input  costs  and  supporting  integration  of  domestic  industry  into European value chains.

(d)  The  assessment of impact of Free Trade Agreements (FTAs) is a continuous process. A Joint Study Group (JSG) is normally set up to study the feasibility of the proposed FTAs, including their impact on the domestic industry, especially small and medium enterprises. Stakeholders including industry representatives, Apex Chambers  of  Commerce  and  Industry,  Industry  Associations  as  well  as  the Administrative Ministries and Departments are consulted from time to time. The FTA Monitoring  Committee  under  the  Department  of  Commerce  (DoC)  oversees  the impact  of  FTAs  through  regular  industry  feedback  on  employment  and  industrial growth. This helps address import-related issues such as rule violations and unfair trade practices, as well as export challenges like FTA underutilization and non-trade barriers.  Additionally,  the  DoC  conducts  FTA  assessment  studies  as  needed  for review and to guide future negotiations.

(e) India-EU FTA has specific commitments to facilitate trade, avoid unnecessary restrictions and enhance transparency, establishing consultation and rapid reaction mechanism to resolve issues and reach a mutually acceptable solution, with a view to address non-tariff barriers.

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