Reuters reported Oct. 22 that Commerce and Industry Minister Piyush Goyal expects India’s proposed free-trade pact with the European Union to take effect four to five months after signing, while formal approvals remain ahead.
Goyal expects a signature before the end of 2026, Reuters reported. The European Commission said negotiations concluded Jan. 27, 2026. On Sept. 11, the Commission submitted proposals to the Council of the European Union seeking authorization to sign and conclude the pact. It has not yet been signed.
The Commission says legal review can still change the published text. Signing would settle the text, while the agreement’s international legal effect would follow only after each side completes its domestic procedures.
India’s Ministry of Commerce & Industry says the default start date is the first day of the second month after the two sides exchange written notifications confirming their procedures are complete. They can mutually agree on another date.
The ministry says the EU will immediately remove duties on 70.4% of tariff lines, covering nearly 90.7% of India’s export value. Tariffs on another 20.3% of products would be removed in phases. Textiles, apparel, leather and footwear are among the sectors receiving concessions, the ministry says. These are proposed tariff terms, not trade gains already recorded.
The pact also provides safeguards for Indian domestic industries if a surge of EU imports causes or threatens serious injury, according to the ministry. It does not identify industries likely to be affected.
European Commission figures put goods trade between the two sides at €118 billion in 2025, equal to 11.1% of India’s total trade. Services trade reached €67 billion in 2024.
Moneycontrol reported that Goyal urged businesses to identify partners, sample products and discuss quality requirements and pricing. It quoted him saying, “If we don't start preparing now, we won't be able to make the best of the agreement.”
Council authorization is the next formal step, followed by signature and domestic procedures. The Commission’s announcements give no timetable for those steps.
