EU-India Free Trade Agreement — Tariff Cuts, Status & Timeline
The EU and India concluded their free trade agreement on 27 January 2026. It is not in force yet: the European Commission asked the Council to approve its signature on 11 September 2026, and both sides aim to sign around the end of the year. When it applies, Indian textiles, leather goods and jewellery enter the EU duty-free, and India cuts its tariffs on European cars, machinery, wine and spirits.
Main Tariff Changes in the EU-India Agreement
| Flow | Category | Current duty | After FTA | Timeline |
|---|---|---|---|---|
| India → EU | Textiles and apparel | Up to 12% | 0% | At entry into force |
| India → EU | Leather and footwear | Up to 17% | 0% | At entry into force |
| India → EU | Gems and jewellery | Up to 4% | 0% | At entry into force |
| India → EU | Marine products | Up to 26% | 0% | Many lines at entry into force, others within 5 years |
| EU → India | Cars | 110% | 10%, within a quota of 250,000 cars a year | Phased |
| EU → India | Car parts | Varies by part | 0% | 5 to 10 years |
| EU → India | Machinery | Up to 44% | Mostly 0% | Phased |
| EU → India | Chemicals | Up to 22% | Mostly 0% | Phased |
| EU → India | Pharmaceuticals | 11% | Mostly 0% | Phased |
| EU → India | Wine | 150% | 75% at entry into force, later 20% to 30% | Phased |
| EU → India | Spirits | Up to 150% | 40% | Phased |
| EU → India | Beer | 110% | 50% | Phased |
Rates as announced by the European Commission and India's government when the negotiations concluded. Nothing changes until the agreement enters into force, and the signed text decides the rate for a given tariff line.
EU-India FTA — Frequently Asked Questions
What is the EU-India Free Trade Agreement?
A free trade agreement between the European Union and India, concluded on 27 January 2026 at the EU-India summit in New Delhi. Talks first ran from 2007 to 2013 and restarted in 2022. India will remove or cut tariffs on more than 96% of EU goods exports, which the European Commission values at about €4 billion a year in duties. The EU will open 97% of its tariff lines, covering 99.5% of India's exports by value. Investment protection and geographical indications are being negotiated as separate agreements.
Is the EU-India FTA in force?
No. As of October 2026 it is concluded but not signed. On 11 September 2026 the European Commission sent the Council its proposals to sign and conclude the agreement. The Council has to approve, the two sides have to sign, the European Parliament has to give its consent and India has to complete its own approval. Both sides have said they aim to sign around the end of 2026 and to apply the agreement in early 2027. Until then, today's tariffs apply in both directions.
What changes for Indian exports to the EU?
EU duties on textiles and apparel (up to 12%), leather and footwear (up to 17%), gems and jewellery (up to 4%) and many marine products (up to 26%) go to zero when the agreement enters into force. India's government says 70.4% of EU tariff lines, covering 90.7% of India's exports, are freed on the first day, and most of the rest within three to five years.
What changes for EU exports to India?
India's 110% duty on cars falls to 10% within a quota of 250,000 cars a year, and duties on car parts are removed over five to ten years. Duties on machinery (up to 44%), chemicals (up to 22%) and pharmaceuticals (11%) are mostly eliminated. Wine drops from 150% to 75% at entry into force and later to between 20% and 30%. Spirits fall to 40% and beer to 50%. Beef, chicken, rice and sugar are left out of the agreement.
Does the EU-India FTA affect US importers of Indian goods?
Not directly. It governs trade between the EU and India. US duties on Indian goods do not change: the regular duty rate, plus the 10% forced-labor Section 301 tariff on most goods, and Section 232 on steel, aluminum and the other products it covers. India has no free trade agreement with the United States.
What should an importer do before the agreement applies?
Nothing changes at the border until entry into force, so price current orders at today's duty. If you buy Indian textiles, leather goods or jewellery into the EU, or sell European cars, machinery or wine into India, check the final tariff schedule for your tariff line when the signed text is published: the announced rates are headline figures, and the preference will depend on meeting the agreement's rules of origin.
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