Effective or announced 27 January 2026Impact for foreign investors: high
What changed
The India–EU FTA was announced on 27 January 2026 at the 16th India–EU Summit. Government sources said in August 2026 that legal scrubbing was complete and signing was on track for the end of 2026. It takes effect only after signature and ratification. As announced, duty on EU cars would fall from 110% to 10% for 250,000 vehicles a year, with EV cuts only after five years.
Who it affects
EU exporters and investors, especially in vehicles, and Indian firms supplying the EU.
What to do
Do not price on announced terms yet. Track signature and ratification, and prepare origin documentation for when it takes effect.