India and the European Union are preparing to implement their long-awaited Free Trade Agreement in 2027 after completing legal review and ratification procedures.

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• India and the European Union politically concluded the Free Trade Agreement on 27 January 2026 after nearly two decades of negotiations.
• The agreement is expected to officially come into force in early 2027 following legal scrutiny and approval by European and Indian authorities.
• The trade pact aims to expand bilateral trade in goods and services while improving investment flows and regulatory cooperation between both economies.
• Ratification within the European Union requires approval from the Council of the European Union and consent from the European Parliament.
• European Union legal teams are currently reviewing the negotiated agreement text, and the examination process is expected to conclude by July 2026.
• Separate negotiations for an Investment Protection Agreement are continuing because the main Free Trade Agreement does not include a complete investment chapter.
• Bilateral trade in goods between India and the European Union reached approximately 136.54 billion US dollars during the financial year 2024-25.
• Trade in services between India and the European Union stood at around 83.10 billion US dollars in 2024, highlighting deep economic cooperation.