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The trade deal, for European exporters

India has some of the highest import duties of any large economy. The trade deal closed in January 2026 will cut many of them, some dramatically, once it applies.

Checked October 2026

What was agreed

According to summaries published at the conclusion of negotiations:

  • India will eliminate tariffs on 86% of tariff lines, covering 93% of EU exports by value. With partial cuts, tariffs fall on 96.6% of EU exports, saving EU exporters around €4 billion a year.
  • Cars: Indian duties of up to 110% fall to 10% within an annual quota of up to 250,000 vehicles.
  • Wine: duties fall from 150% to between 20% and 30%, depending on the price segment.
  • Machinery: duties of up to 44% are mostly eliminated.
  • Chemicals: duties of up to 22% mostly eliminated.
  • Pharmaceuticals: duties of up to 11% mostly eliminated.
  • Processed food: duties on items such as bread and confectionery, currently up to 30%, are eliminated.
  • Olive oil: from 40% to 0%.
  • Spirits and beer: down to 40% and 50%.
  • Aircraft, medical equipment, plastics, iron and steel: duties of up to 11%, 27.5%, 16.5% and 22% are eliminated for almost all products.

For the full table, see what is in the agreement.

Many cuts are phased, and some are subject to quotas. The final schedules decide what applies to your products.

Timeline

Negotiations concluded on 27 January 2026, and the European Commission sent its proposals for signature to EU governments on 11 September 2026. Signature is expected by the end of 2026. Entry into force follows European Parliament consent and ratification in India. See the full timeline.

Rules of origin

Preferences apply only to products that originate in the EU under the agreement's rules. Exporters self-certify origin. Check your supply chain, especially for products with significant non-EU inputs.

How to prepare

  1. Identify your products' HS codes and current Indian duties on Access2Markets.
  2. Model pricing with and without the FTA, including phased reductions.
  3. Check Indian product standards and certification (for example BIS for many products).
  4. Review your distribution strategy: lower tariffs may justify direct presence.
  5. Talk to Indian partners now, ahead of competitors.

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