Though the formal signing will take place only after the legal scrubbing is finished, this pact will help facilitate the diversification of India’s export markets — critical when the country faces a 50 per cent tariff levy on exports to the US. The relationship with the EU is deepening beyond trade as well, with the signing of a Security and Defence Partnership that will facilitate greater collaboration in areas of maritime security, counter-terrorism and cybersecurity. Under the agreement, India has received preferential access to the European markets across 97 per cent of tariff lines, while for the EU, India has offered tariff liberalisation on 92.1 per cent of tariff lines. Some tariff lines will see immediate reductions, while in certain cases the duty reductions will be implemented in a phased manner. And while India has stuck to its red lines — such as dairy — it has also secured commitments across 144 services subsectors, including IT/ITeS, education and professional services.

Source: Indian Express January 28, 2026 07:56 UTC