The European Commission has submitted the India-EU free trade agreement to the Council of the European Union for approval, moving the landmark pact closer to formal signature.

The Commission moved the text to the EU Council on Friday (11 September), paving the way for the two sides to sign the deal in December, after negotiations concluded on 27 January 2026.

The deal, described by the Commission as the largest trade agreement between the two sides, will eliminate or reduce tariffs on 96 per cent of EU goods exports to India and cut trade barriers.

Together, India and the European Union represent a market of nearly 2 billion people, with the two trading more than £180 billion worth of goods and services each year, supporting nearly 800,000 jobs in the European Union.

The Council must now consider whether to authorise the signing and conclusion of the pact.

If the Council approves the proposal, the agreement will be signed and will then require the consent of the European Parliament before it can be formally concluded and enter into force.

In India, the agreement will require approval from the Union Cabinet, followed by the nod of President Droupadi Murmu, before it can be implemented.

The agreement could significantly reshape trade in multiple sectors once implemented.

Once the remaining approval and ratification procedures are completed, the agreement could significantly reshape trade in automobiles, machinery, pharmaceuticals, medical equipment, services, food products and several other sectors.

It forms part of a wider effort by both sides to build more resilient supply chains at a time of increasing tariffs, trade restrictions and geopolitical competition.

Both sides aim to implement the trade pact in the first half of 2027.

The 11 September submission marks one of the most important procedural milestones since negotiations concluded in January, bringing the agreement closer to implementation after nearly two decades of on-and-off negotiations that first began in 2007.

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