European Commission Submits India Trade Deal to EU Council for Approval
The European Commission has formally submitted proposals to the Council of the European Union to sign and finalize the Free Trade Agreement with the Republic of India. This step moves the deal into its final authorization phase. If approved, this will mark the largest bilateral trade agreement concluded by either side. The pact plans to lower or eliminate duties on 96 per cent of European goods exported to India, which is expected to save European businesses up to €4 billion each year while connecting a combined market of two billion people.
Moving the Deal to Member States for Approval
By submitting the text to the Council, the European Commission is asking the 27 EU Member States for the official authorization required to sign and conclude the trade deal.
When the agreement comes into effect, it will lower tariffs, reduce non-tariff trade barriers, and establish clearer rules for cross-border investments. Commercial exchange in goods and services between the European Union and India currently exceeds €180 billion each year, supporting roughly 800,000 jobs across Europe.
Tariff Cuts and Cost Savings for Businesses
At the center of the proposed agreement are major duty reductions across a wide range of commercial goods. The trade deal removes or scales back import duties on 96 percent of European products entering the Indian market.
These reductions are set to save European exporters approximately €4 billion annually in direct duties. The reduced barriers are intended to help European businesses compete on more equal footing in India's expanding economy, while offering consumers broader product choices and competitive pricing.
Fast-Tracking the Approval Process
The submission to the Council follows an accelerated procedure introduced earlier this year by Maroš Šefčovič, the European Commissioner for Trade and Economic Security. This streamlined approach is designed to speed up how trade agreements are implemented, responding to pressures on global trade and ongoing economic uncertainties.
European Commissioner for Trade and Economic Security, Maroš Šefčovič, highlighted the importance of moving quickly through the legal stages.
"Our focus has been clear from the start: to ensure that businesses and citizens feel the tangible benefits of this landmark FTA as quickly as possible," Commissioner Šefčovič stated.
"Timing matters, which is why we are now following through by submitting our proposals to the Council for signature and conclusion in record time."
Connecting Two Major Economies
The agreement establishes a framework between two significant global economic partners. Combined, the European Union and India represent a consumer base of two billion people and generate roughly a quarter of world Gross Domestic Product.
Commenting on the scope of the agreement, Commissioner Šefčovič noted the scale of the trade relation. "This agreement brings together two of the world's largest economies — a market of 2 billion people and around a quarter of global GDP," Commissioner Šefčovič said. "It will very soon start creating new opportunities for both trade and investment."
Next Steps in the Ratification Process
With the proposals officially transmitted, the agreement must clear several legal procedures before taking effect. The Council of the European Union must first grant formal approval for signature and conclusion.
Once Council approval is secured and the document is signed, it will be sent to the European Parliament for consent. At the same time, Indian authorities are carrying out their own internal ratification processes. After all legal requirements are completed on both sides, the agreement will officially enter into force.
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