India and the European Union have agreed to maintain close communication to resolve procedural and implementation-related issues surrounding their proposed Free Trade Agreement (FTA), which is expected to come into force by mid-2027.

Commerce Secretary Rajesh Agrawal held high-level discussions with European Commission officials in Brussels, focusing on improving two-way trade, expanding market access, strengthening supply chain resilience and creating new business opportunities.

The discussions covered customs cooperation, trade facilitation and preparations for implementing the India-EU FTA. Both sides emphasised the importance of efficient, transparent and digitally enabled customs procedures to reduce transaction costs and support smoother cross-border trade.

The agreement is expected to be formally signed in December 2026 in Brussels during Prime Minister Narendra Modi’s planned visit. Following approval by the European Parliament, it could enter into force in early to mid-2027, with tariff reductions introduced gradually over a period of up to ten years.

The discussions also highlighted opportunities for cooperation in sustainable development, clean energy, green technology and the gems and jewellery sector. European industry representatives were encouraged to strengthen trade and investment ties with India and participate in its expanding manufacturing and supply chains.

The proposed FTA is expected to create new opportunities for Indian exporters, particularly in labour-intensive sectors such as textiles, leather and gems and jewellery, while strengthening India-EU economic relations.