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EU-India Free Trade Agreement 2026

Concluded 27 January 2026, awaiting ratification on both sides. Once in force, the agreement will eliminate duties on 90%+ of goods traded between India and the EU across 12 sectors.

What the FTA changes for buyers and suppliers

  • Tariff cuts on 90%+ of tariff lines, to be phased in over 5-7 years once ratified. Many lines will hit zero on day one.
  • Rules of origin will determine eligibility. Goods must be wholly obtained, sufficiently transformed, or meet value-add thresholds.
  • Origin certificates (EUR.1 or origin declaration on the invoice) will prove eligibility at EU customs.
  • Services and procurement chapters will open IT services, financial services, and government procurement.

FAQ

When did the EU-India FTA come into force?

The agreement was concluded on 27 January 2026. Ratification by member states is in progress. Preferential tariffs apply once ratified at the EU level and the originating country qualifies under rules of origin.

Which sectors will benefit most?

Machinery, automotive components, pharmaceuticals, textiles, chemicals, electronics, and steel will see the largest tariff cuts once ratified. 90%+ of goods will be covered.

What about CBAM (Carbon Border Adjustment Mechanism)?

CBAM has been live since 1 January 2026 and applies to cement, iron and steel, aluminium, fertilisers, electricity, and hydrogen imports into the EU regardless of FTA status. Suppliers in those sectors must report embedded emissions.

How will I claim FTA preferential rates once it's in force?

Use the tariff calculator below with your HS code to estimate the preferential vs. MFN rates that will apply after ratification. The supplier will need an EUR.1 or origin declaration; the import-duty calculator covers the paperwork buyers should be prepared to handle.

Do all Indian suppliers qualify?

No. Goods must satisfy India-EU rules of origin (RoO). The supplier provides an origin declaration; the buyer (importer) submits it to EU customs.

Sectors covered by the incoming FTA