India, EU to sign free trade agreement by end-2026; pact to take effect in Q1, CY27: Piyush Goyal
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India and the European Union (EU) have agreed to ink the free trade agreement by the end of this year, Commerce and Industry Minister Piyush Goyal said on Thursday.
Addressing the India-Finland Business Round Table in Helsinki, he said the pact will come into force in the first quarter of 2027.
Trade pact to create one of the world's largest economic partnerships
"The 27-nation EU-India free trade agreement ...in the course of my meetings in Brussels yesterday, we have agreed to sign before the end of calendar 2026, the final legal document and bring into effect in the first quarter of 2027, sometime in February-March next year," he said.
He added that the deal will open a plethora of opportunities for businesses on both sides.
On January 27 this year, India and the European Union (EU) announced the conclusion of negotiations for the 'mother of all deals'.
Under the pact, 93 per cent of Indian shipments will enjoy duty-free access to the 27-nation bloc, while the import of luxury cars and wines from the EU will become less expensive.
The deal, concluded after negotiations spanning over two decades, will create a market of about 2 billion people across the world's fourth-largest economy, India, and the second-largest economic bloc, the EU.
Taken together, India and the EU account for 25 per cent of the global GDP and one-third (about US$11 trillion) of the international trade (about US$33 trillion).
Goyal invites Finnish firms to invest in India
The minister also invited Finnish companies to explore investment opportunities in India in areas like clean and green energy, biotechnology and storage systems.
"We invite all of you to come and participate in the delta of opportunities in India," he said, adding, "I would like to invite Finnish students possibly through dual degrees so that they can experience India because the future growth of global economy will come from Asia, Africa and Latin America."
He added that India has announced ₹1.27 lakh crore for the second edition of the India Semiconductor Mission, and Finnish companies should explore opportunities in this area.
The minister is leading a business delegation to Helsinki.