‘Compliance norms could derail India EU FTA deal benefits’

8 MAY 2026

While hailing the India-European Union (EU) Free Trade Agreement (FTA) as creating a joint market comprising one quarter of global Gross Domestic Product (GDP), the EU’s ambassador to India Hervé Delphin also struck a note of caution over regulatory hurdles and “unfinished business” that could overshadow the benefits of the deal.
Negotiations on the FTA were concluded in January 2026.
The deal now requires legal review, ratification by the European Parliament, and approval by India, with full force expected by early 2027.
The deal covers goods, services, and investments, with plans for provisional application by late 2026, creating a partnership covering a combined market of nearly 2 billion people.
The EU will eliminate duties on 99.5% of Indian exports, significantly benefiting labor-intensive sectors like textiles, leather, gems, and engineering goods.
India will offer access to 92.1% of its tariff lines.
Beyond goods, the agreement includes investment protection, services, and sustainable development.