Commerce Minister Piyush Goyal announced that India and the European Union have entered a new phase of partnership with the conclusion of the India–EU Free Trade Agreement (FTA), describing it as a “game-changing and transformational” deal that promises to boost trade, deepen economic engagement, and strengthen cooperation across strategic sectors.

Speaking at a joint press conference, Goyal called the agreement one of the most comprehensive trade deals India has ever negotiated. The FTA covers nearly 99% of Indian exports to the EU and 97% of EU exports to India, offering unprecedented market access for businesses on both sides.

“This breakthrough, achieved after nearly two decades of negotiations, balances India’s sensitivities while securing long-term gains for exporters and manufacturers,” Goyal said. He noted that the deal opens up EU markets worth around ₹6.4 lakh crore for Indian exports, benefiting states across the country, including Gujarat, Maharashtra, Tamil Nadu, Karnataka, Uttar Pradesh, Rajasthan, Punjab, Telangana, Andhra Pradesh, West Bengal, Assam, and Kerala.

Labour-intensive sectors such as textiles, apparel, leather, footwear, gems and jewellery, engineering goods, pharmaceuticals, chemicals, electronics, marine products, tea, spices, and handicrafts are expected to benefit the most. Tariffs on several products will either be eliminated immediately or phased out over time, making Indian goods more competitive in European markets. The FTA is also expected to help MSMEs integrate more effectively into global value chains.

Beyond trade, Goyal highlighted that the partnership extends to defence, security, innovation, science and technology, investment flows, and financial market integration. He emphasized that the agreement reflects shared democratic values, a commitment to a rules-based global order, and a vision for sustainable, inclusive growth.

The minister added that the FTA has been designed to protect sensitive domestic sectors through appropriate transition periods, while creating new employment opportunities in export-oriented and labour-intensive industries.

“The India–EU FTA is not just a trade pact,” Goyal said, “it is a long-term framework for deeper economic and strategic collaboration. It lays the foundation for a stronger, more resilient, and mutually beneficial partnership, positioning India as a key global manufacturing and export hub in the coming years.”